The Law Commission of England and Wales has launched a consultation regarding a proposed legislation to designate cryptocurrencies and NFTs as property.
In a report released by the independent statutory body, it was mentioned that crypto tokens and NFTs could potentially be recognized as property. The commission is inviting public feedback until March 22 to advance this proposal.
Recognizing the significance of property rights, especially in cases of insolvency or unlawful interference, the Law Commission highlighted the unique challenges posed by digital assets.
Unlike traditional physical assets or rights-based assets like debts and financial securities, digital assets do not fit neatly into existing personal property categories, requiring a reevaluation of current legal frameworks.
The Law Commission is soliciting input for its ongoing project on digital assets and electronic trade documents within private international law, with a submission deadline of May 16.
Sarah Green, the commissioner for commercial and common law, explained that the digitization and decentralization of assets present obstacles for current private international law mechanisms in resolving jurisdictional and legal conflicts.
The consultation aims to gather insights on commercial and legal practices involving digital assets and electronic trade documents. The feedback received will influence the final proposal for the crypto as property bill, which will be considered by the government and contribute to future legal reform efforts. This is particularly important following the recent enactment of the Electronic Trade Document Act, which enables the digitization of trade documents in the United Kingdom.
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