Cryptocurrencies and other digital assets are firmly embedded in today's financial world. Government authorities have long realized that it makes no sense to ignore or try to halt their development process, so it is worth leading it. The UK is preparing to establish a legislative framework for transactions involving digital assets.
The British Law Commission has carried out its first-ever rigorous common law analysis to guide the regulatory response of England and Wales to the crypto market development. The study resulted in recommendations seeking to help the government introduce its own legislation on digital assets such as cryptocurrencies and non-transferable tokens (NFTs).
As the digital asset market and related technology continue to change, there remains some residual legal uncertainty and complexity, the report says. The Commission’s recommendations for reform and development of the law are intended “to provide a comprehensive legal foundation for digital assets which will allow these new technologies to flourish, enabling a diverse range of market participants to interact with and benefit from them.”
Notably, in early February, British officials announced their plan to amend legislation to tighten control over crypto-related activities.
