The Law Commission of England and Wales has launched a consultation on legislation to classify virtual currencies and NFTs as property.
A report from an independent statutory body states that cryptographic tokens and non-fungible tokens (NFTs) may be granted property rights. The committee is seeking public input by March 22 to further the initiative.
The Law Commission emphasized the importance of personal property rights in the event of bankruptcy or tortious interference and pointed to the unique challenges of digital assets.
Unlike traditional physical and rights-based assets such as debt and financial securities, digital assets defy traditional personal property categories and require a reassessment of existing legal frameworks.
The Law Commission is seeking insight into ongoing projects regarding digital assets and electronic trade documents within the scope of private international law, with a submission deadline set for May 16.
The digitization and decentralization of assets is a major obstacle to current private international law mechanisms when dealing with jurisdiction and legal disputes, according to Sarah Green, Secretary of State for Commercial and Common Law.
This consultation aims to gather experiences and challenges in commercial and legal practice related to digital assets and electronic transaction documents.
The feedback received will form the final proposals for the Cryptocurrency as an Asset Bill for Government consideration, and will lead to legislative changes, particularly in light of the recent enactment of the Electronic Trade Documents Act, which will facilitate the digitization of trade documents in the UK. will inform subsequent stages of the initiative. .
