July 2, 2022

Great Britain recognized crypto assets as property, and smart contracts as an agreement

Great Britain recognized crypto assets as property, and smart contracts as an agreement

Supported by the British authorities, a working group comprising prominent judges and lawyers in this Monday presented a legal opinion,according to which crypto assets, including cryptocurrencies, are “property available for circulation”, and smart contracts are “a contract to be executed”.

“We conclude that crypto assets possess allproperty characteristics. As far as we know, the status of crypto assets as such was not fixed by any leading precedent in any of the common law jurisdictions ”, Says the 46-page document.

High Court Chancellor Jeffrey Vos beingThe chairman of the working group, called today's publication critical, since it sheds light on a number of “complex legal topics in an accessible way.”

“The working group provided much neededconfidence and legal certainty regarding general English law in the field, which is crucial for the successful development and use of crypto assets and smart contracts in the global financial services industry and beyond ”, - he said.

It is expected that the conclusion of lawyers will contribute to the further distribution of cryptocurrencies and smart contracts in the UK, as well as the development of companies engaged in this industry.

“Smart contracts can be used tocreating safer and more efficient ways to execute agreements between participants. They are able to transform agreements, as they automatically carry out transactions and eliminate the need for an intermediary, - the judges acknowledge.

To draw up the document involvedrepresentatives of the technological and financial industries. It does not contain the final definition of cryptocurrency, but recognizes the possibility of using crypto assets in contractual agreements. In the future, the Legislation Commission intends to consider the need to develop a separate legal framework for the cryptocurrency sector.