June 19, 2024

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

A group of British lawmakers has proposed classifying digital assets as property.stepIt 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 The Times publication, conductedpublic discussions have been aimed at bringing clarity to the definition of digital currencies. Senior Justice of the English Supreme Court Geoffrey Vos, who leads the group of legislators, said:

“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 states thatcryptoassets “have all the hallmarks of ownership,” and this gives them a similar legal position. The document notes that “the new or distinctive features possessed by some crypto-assets — immateriality, cryptographic authentication, use of a distributed ledger, decentralization and consensus governance do not disqualify them from 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-backed industryThe Lawtech initiative is being implemented by a special task force that made this announcement. 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.”

Let us remember that this summer the London Arbitration Court recognized Bitcoin as property. The decision was made as part of a hearing regarding the theft of 100 BTC.