The UK considers crypto assets as property and has proposed to extend property law to help recognize and protect crypto.
As of now, the UK has no clear law and has not been accepted as a legal tender.
However, the region’s law commission has published a consultation paper to establish a crypto regulation framework.
This consultation paper focuses on determining crypto ownership to protect users’ rights.
The consultation document published on July 28 outlines how UK property law should and currently relates to cryptocurrencies.
Also, the commissions agreed that digital assets could not be categorized as traditional properties because of their intangible qualities.
According to the Commission, “Some digital assets (including crypto-tokens and crypto assets) are treated as property objects by market participants. Property and property rights are vital to modern social, economic, and legal systems and should be recognized and protected.
Reforming the law to provide legal certainty would lay a strong foundation for developing and adopting digital assets.”
UK prepares itself to become a global cryptocurrency hub
The UK looks forward to becoming a global crypto hub. It seeks to implement directives equivalent to European Markets in Crypto Assets and E-money proposals.
In April, Rishi Sunak, when he was Finance Minister said that he wanted to make Britain a global hub for crypto asset technology. He also asked the Law Commission to review current laws to accommodate digital assets.
The proposal set out by the region’s Law Commission particularly focuses on transferring digital assets.
Although, the Commission declares that crypto-tokens should be subject to the same norms of title transfer as actual property.
However, as per Commission, NFTs do not fit into current private property law.
In addition, if an investor buys a token in good faith without knowledge of anyone’s claim, they have the right to retain ownership in contention.
The also committee insisted that by creating dynamic, adaptable, and competitive legislation for the industry, its recommendations will further the UK’s ambition to become a major worldwide center for cryptocurrencies.
The deadline for receiving the feedback on paper has been set to November 4 by the Commission.
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