Summary
UK Law Commission proposes new category of property for crypto-assets, aiming to accommodate and protect digital assets. The government hopes to attract technological development and establish the UK as a global financial hub for crypto. Additional regulations are being considered to advance the UK’s crypto industry, including stablecoin and crypto staking regulations. The Bank of England’s CBDC ambitions may face challenges due to public indifference and economic factors.
Key Points
1. The UK Law Commission is proposing that ‘crypto-tokens and cryptoassets’ be categorized as a new form of property, as part of evolving UK crypto regulations.
2. The Commission suggests that a new category of personal property could better accommodate digital assets and protect market participants, with the help of an industry panel and multi-disciplinary team.
3. The UK has several registered crypto firms, and the new draft legislation adds to the existing regulations treating crypto trading as a regulated financial activity.