Is Common law able to regulate cryptocurrency?

14.07.2023 The Law Commission of England and Wales has published recommendations on the reform and development of legislation related to digital assets.

Digital assets, which include cryptocurrencies, are used in modern society for increasingly diverse purposes, for example, for investments, making payments, as well as for linking to debt and equity securities.

In this regard, the Government has asked the Law Commission to conduct the first ever serious analysis of common law, showing how the legislation of England and Wales can respond to the emergence of such technologies.

The recommendations of the Law Reform and Development Commission are aimed at creating a comprehensive legal framework for digital assets that will allow these new technologies to flourish, enabling diverse market participants to interact with them and benefit from them.

In its report, the Commission shows that the common law of England and Wales is quite capable of providing a consistent and globally significant regime for existing and new types of digital assets.

Since digital assets are not tangible and differ significantly from physical assets, as well as from rights-based assets such as debts and financial securities, they do not fit into the traditional categories of personal property. Nevertheless, the Commission argues that the flexibility of common law may allow a separate category of personal property to be allocated for more complete recognition and protection of their unique features. The Commission also recommends the adoption of legislation confirming the existence of this category and eliminating any uncertainty.

Link to source: https://www.lawcom.gov.uk/new-recommendations-for-reform-and-development-of-the-law-on-digital-asset...