The Law Commission of England and Wales has published a consultation paper proposing the creation of a new form of property to assign legal rights to cryptocurrencies et al. The Commission believes that this will protect investors.
The Law Commission of England and Wales has published a consultation paper on the crypto market, talking about various aspects of the asset class. The work focuses on reforming laws in relation to certain digital assets as objects of property rights. The Legal Committee will accept comments and responses until November 4, 2022.
Primarily, the consultation paper examines private law principles and private property laws for cryptocurrencies and NFTs. He says digital assets and related technology “could create an Internet of Property.”
Cryptographic Property Rights
Assigning property rights to the asset class helps to properly characterize many contemporaries
and complex legal relationships, they play a role in insolvency cases and for situations involving “succession on death, vesting of property in personal bankruptcy and detection in cases of fraud, theft or breach of trust”.
The Legal Committee believes that These legal rights will help protect investors, which is a priority for many countries. One way it could help is to make it easier for investors to claim losses in the event of theft or fraud.
The Commission proposes to create a new category for more such innovative inventions as blockchain-based assets. The paper says this creates room for “some things not to fall neatly into any category”.
The UK and others are speeding up regulations
The UK region has stepped up its oversight of the crypto market, with a number of recent developments. The UK’s new Chancellor of the Exchequer has introduced a bill to regulate stablecoins, although this will need to be voted on in the House of Lords and the House of Commons.
The authorities have also cracked down on illegal activities. Her Majesty’s Revenue and Customs (HMRC) seized NFTs in a $1.8 million fraud case that was the first of its kind. The country’s marketing watchdog also banned Crypto.com ads for misleading information.
G20 nations also feel an urgent need to regulate stablecoins and coordinate cross-border transactions. 2022 is shaping up to be an important year in terms of regulation, which has largely been good for the crypto market so far.
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