The Law Commission of England and Wales is seeking public input on proposed legislation that would classify cryptocurrencies as property. This move comes as a response to the commission’s report from last year, which highlighted the recognition of property rights for crypto tokens and non-fungible tokens. Responses to the consultation are requested by March 22, emphasising the significance of personal property rights, especially in scenarios like insolvency or asset interference.
Highlighting the unique nature of digital assets compared to traditional forms of property, the commission acknowledges the need for a new approach to classification. Alongside this, the commission is soliciting evidence for its broader project concerning digital assets and electronic trade documents in private international law, with comments welcome until May 16.
The outcomes of these consultations will shape future actions. For the crypto-as-property legislation, the feedback will contribute to the final version presented to the government. Similarly, insights gathered from the international documentation consultation will guide subsequent phases of the project, potentially leading to proposals for law reform.
Sarah Green, the commissioner for commercial and common law, underscores the challenges posed by digitization and decentralisation to conventional methods of resolving legal conflicts. The commission seeks input on the compatibility of existing private international law mechanisms with digital assets and electronic trade documents, as well as the practical challenges encountered in commercial and legal settings.
The commission’s focus on understanding these issues reflects the evolving landscape of digital commerce and its implications for legal frameworks. Notably, recent legislation such as the Electronic Trade Document Act demonstrates efforts to adapt to the digitalization of trade documents in the UK.
