The Law Commission of England today launched a consultation on draft legislation to formally recognize cryptoassets as a new category of property. This comes after the statutory body released its final report on digital assets in June 2023, recommending legislative changes to reduce legal uncertainty around cryptocurrencies and other digital assets.
The Law Commission views this step as vital to allow individuals and businesses to fully utilize cryptoassets and for courts to appropriately protect property rights related to them.
“Personal property rights are important for many reasons, including in the event of insolvency or where assets are interfered with or unlawfully taken,” the Law Commission stated. “However, because digital assets differ significantly from physical assets, and from rights-based assets, they do not fit within traditional categories of personal property.”
The consultation comes along with a call for evidence from the Law Commission on a separate project related to digital assets and electronic trade documents in private international law. Comments on the draft cryptoasset legislation are due by March 22nd, while the deadline for the private international law project is May 16th.
The draft legislation and parallel projects follow years of review by the Law Commission and aim to provide greater legal clarity and protections for users of cryptoassets. If successful, they may also help the UK government achieve its goal of making London a global hub for cryptocurrency innovation and investment.