Public Consultation Initiated In UK To Clarify Status Of Cryptoassets

An administrative body led by the British government, LawTech Delivery Panel (LTDP), has initiated a public consultation to clarify the status of cryptoassets under English private law. ThIs was declared in an official statement published by the British Law Society on May 9th.
The panel’s United Kingdom Jurisdiction Taskforce (UKJT) highlighted the prominence of blockchain technology, cryptocurrencies, and a wide array of other associated concepts, pointing out that they have the potential to revolutionize the domestic and global financial markets. However, the major reason for a lack of confidence of the investors in the crypto industry is the legal and regulatory uncertainty it brings with it. The task force’s chair, Sir Geffrey Vos, chancellor of the High Court, wrote in the foreword of the statement,

“Mainstream investors still need to be convinced that their legal rights can be protected when they trade in cryptoassets and enter into smart contracts.”

The UKJT is one of the six such taskforces of the LTDP. It is an amalgamation of the Judiciary and the Law Commissions of England and Wales, as well as tech and legal experts. Moreover, the U.K. Financial Conduct Authority has also contributed to the initiative as a technical advisor.

Once the consultation is over, the UKJT will release a legal statement based on the derived analysis, in late summer. The authorities will then evaluate whether any legislative change will be necessary or appropriate as per the legal statement.
The task force noted that the consultation period will last until June 21, 2019. It has also made provisions for the public to attend an event in order to discuss the consultation questions on June 4.

The announcement is surely a step forward towards global regulations for crypto. While the prospect of a comprehensive set of rules for the world as a whole, governing the crypto industry is pretty much fanciful at this point, it is possible for individual governments to develop laws that guide how crypto assets are to be regarded within their borders.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.