The Law Commission of England and Wales has published recommendations for the reform of digital asset laws, aiming to establish a clear and consistent framework. The report suggests treating digital assets as a distinct category of personal property and proposes the use of common law to determine the objects falling under this category. It also emphasizes the need for an industry-specific panel to provide non-binding advice on complex legal issues related to digital assets and advocates for a bespoke legal framework to facilitate collateral arrangements. The Commission calls for clarification regarding the coverage of certain digital assets under existing regulations.
Facts
- The Law Commission has published recommendations for the reform of digital asset laws.
- The report highlights the global relevance and applicability of the common law of England and Wales in regulating various types of digital assets.
- The Commission recommends creating a third category of personal property specifically for digital assets, acknowledging their unique features.
- The report suggests establishing an industry-specific panel involving technical experts, legal practitioners, academics, and judges to offer non-binding advice on legal issues related to digital assets.
- Infringement of personal property rights concerning digital assets could have legal ramifications, and the report stresses the importance of preparing prosecutors to address such issues.
- The Commission proposes equipping market participants with a broader range of legal tools and calls for the development of a bespoke legal framework to facilitate collateral arrangements involving crypto-tokens and crypto-assets.
- The Commission seeks clarification through statutory law reforms regarding the coverage of certain digital assets under the Financial Collateral Arrangements (No 2) regulations of 2003.
