The Law Commission of England and Wales recommended classifying cryptocurrencies and non-fungible tokens (NFTs) as a new type of property in a consultation paper published on Thursday.
See related article: Basel Committee starts public consultation on banks’ crypto asset exposures
Fast facts
- The Law Commission, an independent statutory body responsible for reviewing and reforming laws, said that existing laws are not robust enough to encompass digital assets.
- Therefore, the commission recommended creating a new category of property for “data objects” to apply private property laws to digital assets.
- This is because features of digital assets differ significantly from traditional physical assets, and it is, therefore, difficult to apply personal property laws to them, the Commission said.
- The Commission’s recommendations aim to create a strong legal framework for crypto and NFTs and turn the country into a global crypto hub.
- If implemented, the Commission’s proposals would provide “legal protection for the assets that you invest in,” Paul Haswell, a partner with Seyfarth Shaw LLP, told Forkast.
- The government has also tasked the Law Commission with proposing rules for decentralized autonomous organizations (DAOs).
See related article: Bank of England calls for greater crypto regulation