The Law Commissions of England and Wales are proposing to recognize crypto as a new type of property
The Law Commission of England and Wales released a consultation document proposing to create a new form of property to give legal rights to cryptocurrencies et al. The Commission believes that this will protect investors.
The Law Commission of England and Wales published a consultation document on the crypto market, talking about several aspects of the asset class. The article is focused on reforming laws regarding certain digital assets as objects of property rights. The Law Commission will accept comments and responses until 4 November 2022.
The consultation note primarily takes into account private law principles and private property laws for cryptocurrencies and NFTs. It says digital assets and related technology “could create an internet of property.”
Crypto ownership
Giving property rights to the asset class helps the proper characterization of many modern
and complex legal matters, play a role in insolvency cases, and for situations involving “succession on death, vesting of property in personal bankruptcy and tracing in cases of fraud, theft or breach of trust.”
The Law Commission believes that these legal rights will help protect investors, which has been a priority for several countries. One way it could help is to make it easier for investors to claim losses in the event of theft or fraud.
The Commission proposes to create a new category for several such new inventions as blockchain-based assets. The paper says this leaves room for “certain things don’t fall neatly into any of the categories.”
The UK and others are speeding up regulations
The UK region has accelerated oversight of the crypto market, with a number of developments taking place recently. The new British Chancellor of the Exchequer presented a bill to regulate stablecoins, although this needs to be passed in the House of Lords and the House of Parliament.
The authorities have also cracked down on illegal activities. Her Majesty’s Revenue and Customs (HMRC) seized NFTs in a $1.8 million fraud case that was the first of its kind. The country’s marketing watchdog has also banned Crypto.com ads for misleading information.
G20 nations also feel an urgent need to regulate stablecoins and coordinate cross-border transactions. 2022 looks set to be a big year in terms of regulation, which has largely been good for the crypto market so far.
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