The Law Commission has been asked by the government to make recommendations for reform to ensure that the law is capable of accommodating both cryptoassets and other digital assets in a way which allows the possibilities of such technology to flourish.
The Law Commission’s work will consider whether digital assets should be “possessable”. At present, the law recognises that a digital asset can be property which can be “owned”. However, it does not recognise the possibility that a digital asset can be “possessed” because the concept of “possession” is currently limited to physical things. This has consequences for how digital assets are transferred, secured and protected under the law.
The Law Commission has published a call for evidence to seek views about, and evidence of, the ways in which digital assets are being used, treated and dealt with by market participants. It also seeks views on the potential consequences of digital assets being “possessable”.
The call for evidence closes on 30 July 2021.