The UK Law Commission has suggested major legal reforms for clarity regarding crypto after the country saw its bill move closer to becoming a law.
A few days after the parliament sent the crypto bill in the UK for final approval from King Charles, new developments emerged. The UK Law Commission has prepared new recommendations for the crypto industry on its legal aspect.
The UK Law Commission made a total of four recommendations. The first suggestion includes a third category of personal property to recognize digital assets and protect their features. It called for legislation for the same. The second recommendation called for the creation of an expert panel that comprised judges, academics, legal practitioners, and technical experts.
The third suggestion was to create a legal framework for all operations of collateral arrangements of digital assets. The last recommendation was made for statutory law reform to confirm whether crypto assets were under the purview of the Financial Collateral Arrangements (No 2) Regulations 2003.
“Our recommendations for reform and development of the law, therefore, seek to solidify the legal foundation for digital assets. We also aim to ensure that the private law in England and Wales remains a dynamic, globally competitive, and flexible tool that enables further technological innovation,” said the Law Commissioner for Commercial and Common Law, Professor Sarah Green.
The Commission also claimed the recommendations were in line with the country’s efforts to ensure digital assets ‘flourished.’ As a result, the flexibility of common law could be able to create a new category of personal property for crypto, they said.