England Law Commission has recommended the government in classification of crypto assets.
The crypto sector has witnessed regulatory advancements in several countries.
The UK’s Law Commission announced that it has initiated a new bill to evaluate the current classification of crypto assets. This announcement comes amid an increasing probability of the Bank of England initiating an interest rate-cut cycle on Wednesday. The Commission has stated that digital assets must be categorized in a different sub-category due to their properties.
Notably, the Commission published a report and draft bill stating that the assets need a sub-category within ‘personal property’. However, the England government’s advisory Commission states that the crypto assets don’t fall into both, physical assets and right-based assets. These two types of assets are the only sub-categories within personal property.
Accordingly, the draft bill recommends the legislation to confirm the presence of a third category in personal property. Previously, in June 2023, England Law Commission recommended that crypto assets must be considered as ‘personal property’. This new supplement report and Draft bill are an addition, altering some implications from previous reports.
The England Law Commission stated in their X account:
“This recommendation and the draft legislation, along with the other recommendations made in our June 2023 report, are now being considered by Government.”
Moreover, this year has witnessed numerous advancements in the crypto regulatory sector on a global level. Several countries have scrutinized and initiated new laws for crypto assets apart from England.
How is the Global Crypto Regulatory Landscape?
In the past few months, the cryptocurrency sector in several countries has witnessed the scrutiny of its respective regulatory bodies. Notably, the USA’s SEC has shown increased attention to the sector with multiple lawsuits on cryptocurrency firms. Presently, prominent crypto exchange Binance is battling a lawsuit against the SEC.
Meanwhile, the Indian government has announced that it will unveil a crypto policy discussion paper by September. Additionally, the Russian government announced that it would legalize cryptocurrency. Finally, the England Law Commission’s proposal can aid crypto regulations in the UK.
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