UK Law Commission Publishes Proposals to Reform Laws Relating to Digital Assets — Says Reforms Must Not ‘Stifle Development’ – Regulation Bitcoin News

Digital assets are playing an increasingly significant role in today’s society, according to the Law Commission (the UK statutory body). It is imperative that the law related to digital assets be updated. Reforming the laws will not only protect the rights of users and maximize the potential of digital assets but can potentially position England and Wales “as a global hub for digital assets.”

Many areas still need reform

The Law Commission, a British legal body, has published a consultation paper in which it plans to overhaul the law regarding digital assets. The commission said the release of the paper follows a request by the government for it “to review the law on digital assets, to ensure that it can accommodate them as they continue to evolve and expand.”

In a recently released statement, the Law Commission acknowledged that digital assets “play an increasingly important role in modern society.” As a consequence, there is a need to craft laws that allow “a more diverse range of people, groups, and companies to interact online and benefit from them.”

While acknowledging that both England and Wales have already taken steps to accommodate emerging technologies like cryptocurrencies and non-fungible tokens (NFT), the commission claimed there are “several key areas” of the law that still needs to be reformed. Such reforms will “protect the rights of users and maximize the potential of digital assets.”

Commenting on the commission’s proposals, Sarah Green, the Law Commissioner for Commercial and Common Law, said:

Digital assets such as NFTs and other crypto-tokens have evolved and proliferated at great speed, so it’s vital that our laws are adaptable enough to be able to accommodate them. These proposals are designed to provide a solid legal framework to ensure greater user protection and encourage technological innovation.

Establishing the Right Legal Foundations

Green also emphasized the importance of directing the commission’s efforts towards “developing the right legal foundations to support these emerging technologies.” She suggested the commission should avoid rushing to impose a regulatory regime as this may have an unintended consequence of stifling the further development of these technologies.

By doing this, both England and Wales “could reap the potential rewards and position itself as a global hub for digital assets.” Meanwhile, in the statement, the Law Commission said those that wish to give it feedback must do so by November 4.

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Terence Zimwara

Terence Zimwara was a Zimbabwe journalist, author, and writer who won the award. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.