The Law Commission's Digital Assets Final Report is in.
These are the headlines:
1. The Law Commission has recommended statutory confirmation that a thing will not be deprived of legal status as an object of personal property rights simply because it is neither a thing in action nor a thing in possession. In short, the Law Commission stands by the notion of a third category of personal property which would cover digital assets.
2. The Law Commission has recommended that the Government creates or nominates a panel of industry-specific technical experts, legal practitioners, academics and judges to give guidance on the complex issues relating to digital assets, and in particular issues relating to the control of digital assets.
3. The Law Commission has recommended statutory amendments to the Financial Collateral Arrangements (No 2) Regulations 2003 to: (i) clarify the extent to which digital assets can satisfy the definition of cash, and (ii) clarify various points specific to financial instruments and credit claims.
In addition, the Law Commission has recommended that further consideration should be given to reforms that would confirm the validity of and/or expand the use of crypto-token networks for the issuance and transfer of equity and other registered corporate securities.
4. The Law Commission has recommended that, as a matter of priority, the Government sets up a multi-disciplinary project to create a bespoke statutory legal framework which addresses the operation and enforcement of certain crypto-token and cryptoasset collateral arrangements.
Further analysis to follow.
Read the full report here: https://lnkd.in/exHAbnhK
#digitalassets #harbottleandlewis #technologylaw #technologydisputes
“we conclude that some digital assets are neither things in possession nor things in action, but that nonetheless the law of England and Wales treats them as capable of being things to which personal property rights can relate”
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