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UK Law Commission Says Crypto and NFTs Need Own Laws

The UK’s Law Commission calls on the government to formulate laws that exclusively govern the crypto and NFT spaces. Bloomberg reported on July 28, noting that the commission believes the current laws cannot adequately govern the burgeoning sectors.

According to the report, the commission is requesting lawmakers to change laws regarding personal property to include data objects. The entity claims that implementing these changes would help courts decide ownership claims of tokens.

Additionally, the commission believes these reforms can help the UK establish where crypto and decentralized finance (DeFi) fits into private law globally. This feat would make the UK a leader in crypto regulations, setting a precedent for other jurisdictions to follow.

Moreover, the commission suggested that courts could award damages in crypto. If implemented, this change would mean courts no longer have to determine when crypto should be converted into fiat for settlement.

Matthew Kimber, a lawyer for the commission, said the new category could also come in handy for areas of financial market infrastructure such as voluntary carbon credits. According to him, this move would give non-crypto industries the confidence to embrace blockchain-based liquidity structures.

British Judge Says the UK Has a Chance to Spearhead Crypto Regulation

This news comes after Geoffrey Vos, a senior judge in the UK, said the country has a chance to provide the international legal and regulatory foundations for using crypto and blockchain technology.

Per Vos, exiting the EU offered the UK government, the Bank of England, and the Financial Conduct Authority more power.

He added:

If English law and the UK’s jurisdictions can provide the legal backdrop of choice to DLT systems, a big economic prize will follow.

Vos further noted that English law could replicate its ubiquity in fields like financial services with ubiquity in crypto and blockchain. While he believes the UK is moving in the right direction, he said the country needs to assume a more holistic approach.

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Additionally, Vos asserted that the UK must not use a heavy-handed approach when regulating the nascent sector.

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