The Law Commission of the UK proposed the Introduction of new rules in its property laws to ‘recognize and protect’ crypto.
The United Kingdom is a highly strict place for the crypto industry. However, the government agencies of the UK-based countries introduced better room for the blockchain industry to evolve but imposed strict regulatory policies on the crypto companies, to restrict the illegal use of crypto. Around 35 crypto companies are fully regulated to provide crypto services in the UK under the regulatory approval of the Financial Conduct Authority (FCA), the crypto regulatory body in the UK. The FCA agency shows highly strict stances toward the new crypto companies and they are not trying to welcome more crypto companies.
On 28 July, A consultation paper was released by the UK Law Commission, to focus on determining crypto ownership to protect users’ rights.
The consultation paper emphasized the need for the introduction of new rules & laws to recognize and protect digital assets in a digital world while stressing that digital assets play an important role in the modern social world. The most important thing that the proposal suggested is to introduce the existing UK property law on Cryptocurrencies based property ( like crypto assets or NFTs items) via a unique strategy. So basically the Law Commission seeks to expand the regulatory framework & reach of existing UK property law to cover the crypto industry in its blanket.
Law commission explained:
“Some digital assets (including crypto-tokens and crypto assets) are treated as objects of property 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.”
The Law Commission also suggested the transfer of cryptocurrencies under the UK law Act, where existing property law could be similarly applicable to Cryptocurrency ownership.