Cryptocurrencies Should Be Classed as a New Kind of Property, Says UK Law Commission

IconCryptoNewsTerminal Staff31 Jul, 2024

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Cryptocurrencies Should Be Classed as a New Kind of Property, Says UK Law Commission

The Law Commission of England and Wales has urged the government to classify all cryptocurrencies as a new form of personal property. This would provide clarity and certainty in resolving legal disputes involving digital assets. The law commission's report, published Thursday, argues that cryptocurrencies have characteristics of both tangible and intangible property, which can lead to uncertainty when applying existing legal frameworks. "English law divides personal property into choses in possession (tangible objects that you own) and choses in action (intangible rights and claims)," the report states. "Digital assets, including cryptoassets, can have characteristics of both, which can give rise to uncertainty when resolving legal disputes." The law commission recommends creating a new category of property to address the unique characteristics of cryptocurrencies. This would provide a clear and consistent legal framework for dealing with digital assets. The government is now considering the law commission's recommendations. If implemented, they would represent a significant step forward in the development of a legal framework for cryptocurrencies in the UK.

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