The UK continues to ramp up efforts to establish a regulatory framework for cryptocurrencies, with various proposals being made. In this section, the Law Committee of the region published a consultation paper focusing on determining cryptocurrency ownership to protect users’ rights.
The advisory paper published on July 28 pointed out that it is necessary to establish guidelines for recognizing and protecting cryptocurrencies in a digitalized world while emphasizing that digital assets play an important role.
In enhancing the regulation of cryptocurrencies, legislation must consider the unique features of cryptocurrencies as part of establishing a crypto-friendly environment.
“Some digital assets are considered property by market participants. Property and property rights are vital to modern social, economic, and legal systems and should be recognized and protected.,” the Commission said.
Part of the proposal also revolved around transferring digital assets, with the committee saying that rules for transferring ownership in existing assets should apply to crypto tokens.
In addition, the draft law states that if an investor purchases a token in good faith, unaware of any other party’s claims, they have the right to retain ownership of the disputed token.
The Commission asserts that its proposals will advance the UK’s goal of becoming a global crypto hub by designing dynamic, flexible, and competitive legislation for the sector.