UK to introduce new laws related to NFTs and cryptos

The UK Law Commission recently established that the UK should create a new section of private property law for digital assets such as crypto and NFTs. This follows the European Union’s efforts to regulate the crypto asset sector through a Europe-wide regulation called MiCA.

A legal body in the UK is encouraging parliament to reform laws to accommodate digital assets such as crypto and NFTs.

What will this new law require?

In addition to defining NFTs and crypto as private property, the proposed legal reform would allow those affected by crypto scams to take legal action. This crypto-friendly reform is in line with the UK’s ambitions to become a global crypto hub. It is important to note that these reforms only apply to Britain. Because Northern Ireland and Scotland have their own legal commissions.

In April, Rishi Sunak – then UK finance minister and now in the running to become the next prime minister – asked the Law Commission to review the UK’s current crypto laws. This was done to accommodate digital assets like NFTs and cryptos.

Last week, financial regulators proposed that parliament recognize stablecoins as a legal means of payment. Also, the consultation paper discusses how the current law cannot be applied to digital assets. According to this paper, digital assets have “many different characteristics” and “unique qualities” that distinguish them from traditional assets.

The UK’s Position as a Cryptocurrency Hub

Undoubtedly, the UK is fast becoming a crypto and NFT hub. Still, the FCA, which regulates crypto in the UK, has yet to create a fully regulated landscape. Therefore, according to the Law Commissioner for Commercial and Common Law, Sarah Green, a strong regulatory framework must be put in place to support the UK crypto industry.

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