UK Law Commission Seeks Legal Cover for Digital Assets
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Crypto regulation remains in development as government agencies deliberate on the best step forward. So far, the general stance has been to ban the use of digital assets outrightly. However, a growing number of bureaucrats are considering the cryptocurrency industry. One of such is the UK Law Commission, which recently released a proposal.
Law Reforms to Cover Digital Assets
Blockchain-based assets have surged in trading volume in the past year and are enjoying growing mainstream adoption. This has forced several government agencies to consider the best approach to align them with existing societal operations.
The UK Law Commission, in a recent blog post, said it was deliberating on a set of proposals for the reformation of laws surrounding digital assets. Rapidly pointing out their societal relevance, the 57-year Law Commission of England and Wales noted that the reformation should centre around accommodating cryptocurrencies as they evolve and grow.
The UK Law Commission also noted that its proposals are meant to enable wider recognition and legal protection for virtual assets while making it easier for individuals and businesses to interact without ambiguity. According to the legal entity, the commission’s proposals are expected to be dynamic, highly competitive, and flexible to achieve the region’s collective goal of becoming a global hub for digital assets.
As part of its dynamic system, the UK Law Commission defined digital assets as ‘data objects’, distinguishing them from the extant personal property law. It also stated that the proposed changes would cover how the distinct form of personal property would be built and developed, properly define laws around ownership and control of digital assets, and state the proper guidelines surrounding transfers of digital assets.
UK Following Dubai’s Trend
The United Kingdom has remained one of the hotbeds of digital asset speculation and investments since the crypto industry experienced a massive uptrend last year. According to a Financial Conduct Authority (FCA) report, over 2.3 million Britons currently invest in cryptocurrency as against 1.9 million in 2020. The report also stated that about 78% of adults have once heard of cryptocurrencies.
Meanwhile, the United Arab Emirates (UAE) looks to become the major destination for everything blockchain and digital assets. In the early part of this year, the Ruler of Dubai, Sheikh Mohammed bin Rashid, announced the launch of the Dubai Virtual Asset Regulation Law. This led to the formation of the Virtual Asset Regulatory Authority (VARA) to oversee the industry.
VARA has been quite active in the crypto space and has issued specialised trading licenses to the likes of Binance, OKX, Coinbase, FTX, and KuCoin in its region. The agency has also launched its Metaverse HQ on the hugely popular blockchain and metaverse game The Sandbox.
Dubai continues to ramp up its efforts to become the talking point in the new decentralised economy. Crown Prince Hamdan bin Mohammed announced the launch of the Metaverse Strategy, which is expected to bring about $4 billion into the economy by the year 2030.
The initiative would also yield other benefits. The Crown Prince announced that the initiative would create about 40,000 virtual jobs and more than triple the number of crypto trading platforms and blockchain and crypto companies in the following years.
Changing Tides in Europe
The UK has become even more pro-crypto in the past year. According to a recent Giambrone & Partners LLP post, the legal firm has been granted permission to send a subpoena via NFTs. The legal firm said the judgment was ratified by the High Court of England and Wales in the case of D’Aloia versus an unknown and the Binance exchange.
A growing wave of digital assets looks set to sweep Europe in the coming years.
