January 31, 2023

The Parliament of Great Britain proposed to recognize crypto assets as property

A group of British lawmakers has proposed classifying digital assets as property. This step It will simplify the use of tokens and further development of the industry by cryptocurrency companies.

The UK has taken a step towards the industry,by classifying crypto assets as property. A group of lawmakers, consisting of lawyers and judges, issued an official statement in which significant steps were taken to eliminate uncertainties regarding crypto assets and their underlying technologies.

According to a publication by The Times conducted byPublic discussions were aimed at clarifying the definition of digital currencies. The Chief Justice of England’s Supreme Court, Geoffrey Vos, head of the lawmaking group, noted:

“Answers to such legal questions will provide a solid foundation for the massive use of crypto assets and legally valid smart contracts.”

The official statement says thatcrypto assets “have all the attributes of ownership”, and this gives them a similar legal status. The document noted that "new or distinctive features that some crypto assets possess - intangibility, cryptographic authentication, the use of a distributed registry, decentralization and consensus management do not deprive them of the possibility of being recognized as property."

This proposal caused a stir in the industry,since it will serve as the basis for the widespread adoption of crypto assets and smart contracts in the UK. In addition, clarification can provide a strategic advantage for startups working in the country.

Government supported industryLawtech's initiative is being implemented by a special task force that made this statement. One of the leaders of the Lawtech initiative, Jenifer Swallow, noted:

“It's good to see the ability of our common law system to adapt to rapidly changing technologies, as demonstrated in this landmark legal statement.”

Recall that this summer, the London Arbitration Court recognized Bitcoin as property. The decision was made as part of a hearing on the theft of 100 BTC.