The United Kingdom’s Law Commission has recommended the creation of a separate category of personal property to accommodate and protect the unique aspects of cryptocurrencies and digital assets. This recommendation was made as part of a broader analysis of how legal frameworks in England and Wales can address the challenges posed by cryptocurrencies and non-fungible tokens (NFTs).
The Commission proposes the establishment of a new and distinct category of personal property specifically for digital assets. However, it intentionally does not define clear boundaries for this category, suggesting that the existing common law in the UK should be used to determine which digital assets would fall under this classification.
According to the Commission, this new category of personal property would allow for a more nuanced approach to recognizing various types of digital assets, including cryptocurrencies and digitized instruments like carbon emission credits or export quotas.
Additionally, the Law Commission has suggested the formation of an industry-specific panel consisting of technical experts, legal practitioners, academics, and judges. This panel would provide non-binding advice to courts on legal issues and considerations related to the cryptocurrency and digital asset sectors.
Previously, the Financial Services and Markets Bill 2023, approved by King Charles III, enable the UK government to regulate financial services and includes provisions for the regulation of crypto assets. It aims to boost the economy, attract crypto companies, and maintain high regulatory standards. The bill protects individuals and promotes a technologically advanced and environmentally friendly financial industry in the UK.
Meanwhile, South Korea’s “Virtual Asset User Protection” bill strengthens crypto regulation, prioritizing investor safety and positioning the country to compete in Asia. The move comes as Asia emerges as a strong market for cryptocurrencies, potentially driving future growth amid regulatory developments worldwide.