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The Law Commission of England and Wales has launched a consultation on proposed legislation to classify cryptocurrencies and NFTs as property.
A report by the independent statutory body stated that crypto tokens and non-fungible tokens (NFTs) could be granted property rights. The commission has requested public comments by March 22 to promote this initiative.
Highlighting the importance of personal property rights in the event of insolvency or unlawful interference, the Law Commission noted the unique challenges of digital assets.
Unlike traditional physical or rights-based assets, such as debts and financial securities, digital assets challenge conventional personal property categories, requiring re-evaluation of existing legal frameworks.
The Law Commission is looking for ideas for its current project on digital assets and electronic commercial documents under private international law, with a submission deadline set for May 16.
According to Sarah Green, Commissioner for Commercial and Customary Law, the digitization and decentralization of assets present significant obstacles for current private international law mechanisms in addressing jurisdictional and legal conflicts.
The consultation aims to gather experiences and challenges in business and legal practices involving digital assets and electronic business documents.
Comments received will shape the final proposed crypto as a property bill for government consideration and inform subsequent phases of legal reform efforts, particularly in light of the recent enactment of the Electronic Commercial Documents Act. , which makes it easier to digitize business documents in the UK. .