Many governments haven’t known how to regulate cryptocurrencies, but the UK government has asked its independent statutory authority for legislation to look into how property laws in England and Wales might apply to digital assets.
On Thursday, the UK Law Commission said that cryptocurrencies and non-fungible tokens (NFTs) should be recognized as personal property by law.
The statement says that this kind of personal property would be called “data objects” to “take into account the unique qualities of digital assets.” The independent group will also look into ways to improve data items.
Lastly, the panel will try to clarify the laws about ownership, control, transfers, and transactions of digital assets.
The panel says that laws need to change when new technologies like digital assets come along. They also say that the regulation would protect consumers and make the best use of digital assets.
Sarah Green, the law commissioner for Commercial and Common Law, said, “It’s very important that our rules are flexible enough to cover digital assets.
The ideas are meant to create a solid legal framework that gives consumers more consistency and protection while also making it easier for new technologies to be made.
On the other hand, classifying digital assets as data items shows that penalties could be put in place for cryptocurrencies.
The panel said, “We provisionally conclude that there is an arguable case for law reform to provide courts with the discretion to award a remedy denominated in certain crypto-tokens in appropriate cases,”
In a statement, the commission said that the idea could help the government reach its goal of making the Western power a global crypto center.
Green went on to say “It’s important that we focus on developing the right legal foundations to support these emerging technologies, rather than rushing to impose structures that could stifle their development. By clarifying the law, England and Wales could reap the potential rewards and position itself as a global hub for digital assets.”