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31/07/24
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UK Law Commission Introduces Draft Bill to Categorize Digital Assets
The UK Law Commission has published a supplemental report on categorizing digital assets as personal property, noting that the government should categorize them as a new form of personal property.
This came after recommending a law for the confirmation of the existence of a “third category” of personal property rights, which can accommodate certain digital assets including cryptocurrencies.
Personal property is categorized into two types under the law, including tangible personal property and intangible personal property; the commission’s argument says digital assets, including cryptocurrencies and NFTs, can possess both qualities and hinder dispute resolution in court proceedings.
“We conclude that the flexibility of common law allows for the recognition of a distinct category of personal property that can better recognize, accommodate and protect the unique features of certain digital assets (including crypto-tokens and crypto assets).”
Five months ago, the commission also published draft clauses for the implementation of the recommendation concerning the recognition of a further category of personal property.
Hence, they have introduced a draft bill aimed at enabling courts to determine a number of issues such as those related to freezing and destroying someone’s digital assets in a legal dispute. The bill seeks a separate category for digital assets towards creating a solid legal framework and facilitating the growth of the digital assets sector in the nation.
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