UK Report Deems Virtual Currencies Legal Property

Asia Blockchain Review
December 3, 2019

A report recently published by the jurisdiction task force of the United Kingdom’s LawTech Delivery Panel deemed virtual currencies and smart contracts to be property under British law.

Classifying Digital Assets in the UK

According to The Tokenist, the UK’s LawTech Delivery Panel released a 46-page legal document describing the role of smart contracts and digital assets under British law, which resulted from consultation sessions held over a period of six months.

The report revealed that virtual currencies and smart contracts are protected under existing UK law. Moreover, the panel of experts deemed virtual currencies to be property ‘in principle’.

The report also stated that “cryptoassets have all of the indicia of property,” while smart contracts are “capable of having contractual force.”

However, the panel noted that each digital asset should be considered individually, with factors including its purposes, the nature of the asset, and existing regulations for the certain type of asset.

Promoting Financial Technology with Supportive Ecosystem

Meanwhile, the Financial Conduct Authority (FCA), the agency responsible for monitoring the financial markets in the UK, has been fostering a supportive ecosystem that will promote the adoption of digital assets.

One of its initiatives was the introduction of a sandbox that allows firms to experiment with digital assets and put products on trial to assess the demand for this type of asset among investors in the UK.

According to the FCA, security token offerings (STOs) have received positive feedback from investors, such as in the case of TokenMarket, which raised £240,000 during its funding period.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Improving Grant Management with Blockchain Technology
    The U.S. Treasury Department and the National Science Foundation have developed a blockchain-enabled...

    January 27, 2020

    Dish Network Files Patent for Anti-Piracy System Backed by Blockchain
    Dish Network, a major television provider in the U.S., has submitted a patent application for an "an...

    January 27, 2020

    Concerns Raised over Unclear Definitions of Crypto-Assets in Crypto-Currency Act 2020
    A cryptocurrency bill being drafted in the US Congress has been criticized for its vague definitions...

    January 25, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us