The Law Commission of England and Wales issue suggestions to reform the legal structure around digital assets, especially NFTs. Here’s everything you need to know.
- The UK is reforming regulations for digital assets, specifically NFTs, to bring protection and accountability to the crypto asset market.
- The Law Commission of England and Wales proposes changes to create a strong legal foundation for NFTs, pushing their growth and empowering market users.
- The UK government aims to create a full structure for NFTs to explore novel approaches and consider industry expert guidance while being in line with EU standards for crypto laws.
The UK Reforms Regulation Surrounding NFTs
The UK is addressing the regulation of digital assets, specifically NFTs. The Law Commission of England and Wales has released guides to reform the legal structure, aiming to bring protection and accountability to the crypto asset market.
Recognizing the growing nature of the digital asset market, the UK government requested an in-depth analysis from the Law Commission. What’s more, the suggested changes create a strong foundation for NFTs, pushing their growth and empowering market users.
The common law system in England and Wales proves able to create a full framework for NFTs. So, by understanding the unique attributes of these assets, a distinct category within personal property law can rid of ambiguity.
To handle new technologies, the Law Commission suggests creating a panel of industry experts to guide technical and legal aspects. Additionally, novel approaches to NFT regulations, securing crypto-tokens and tokenized securities are being explored.
The UK has been systematically regulating the crypto sector for years. Cryptocurrencies are seen as crypto assets, and the Financial Conduct Authority ensures the following of anti-money laundering procedures. Discussions are happening to put in place a full regulatory structure aligned with EU standards.
Finally, these regulations foster crypto usage, placing the UK’s position as a leading hub for crypto-tokens and assets. The government aims to provide a clear and regular structure, pushing clarity and security for users and market users.