According to Odaily, the Law Commission of England and Wales has recommended that the government classify all crypto assets as a new form of personal property in its final report on digital assets. The Law Commission, an independent body tasked with reviewing and suggesting legal reforms in England and Wales, released a supplementary report on July 30 highlighting the current inadequacies in personal property classification and their legal implications for crypto assets.
Under current UK law, personal property is divided into two categories: tangible property and intangible property, such as debts or rights. The Commission argues that digital assets, including cryptocurrencies and NFTs, may possess characteristics of both categories, complicating dispute resolution in court proceedings. Therefore, it suggests the creation of a 'third category' to ensure that property rights related to crypto assets are clear and enforceable.
The Commission has also published a draft bill calling for the separate classification of crypto assets to help establish a robust legal framework and support the growth of the digital asset industry in England and Wales.