Crypto News: UK Suggests Classifying Crypto as a New Type of Property
Crypto News: The Law Commission of England and Wales has proposed classifying cryptocurrencies and non-fungible tokens (NFTs) as a new category of property in a consultation paper issued Thursday.
- The Law Commission, an independent statutory agency tasked withreviewing and reforming laws, said that existing laws are far from robust to cover digital assets like cryptocurrencies and NFTs.
- Therefore, the commission recommended creating a new typeof property for “data objects” to apply private property laws to digital assets.
- This is because features of digital assets are so different from traditional physical assetsthat it would be difficult to apply personal property laws to them, the Commission explained.
- The Commission’s proposal aimsto create a strong legal framework for crypto and NFTs and turn the country into a global crypto hub.
- Paul Haswell, a partner with Seyfarth Shaw LLP, told Forkastthat if implemented, the Commission’s recommendation would provide “legal protection for the assets that you invest in”.
- The government has also appointed the Law Commission topropose rules for decentralized autonomous organizations (DAOs).