UK law can accommodate crypto assets by creating a new category of personal property that would include digital assets, independent body the Law Commission said on Wednesday.
In a report commissioned by the government, the Law Commission said digital assets such as cryptocurrencies and non-fungible tokens (NFTs) do not fit within the traditional categories of personal property.
As expected, the Commission proposed adding a third category of “digital objects” to the existing categories of personal property, which are “things in possession” (tangible assets like gold) and “things in action” (such as debt or shares in a company).
The group also said the government should create a panel of experts to advise courts on legal issues involving digital assets.
These steps would support the UK government’s aim of becoming a global hub for crypto assets, the Law Commission said in a statement.