Members of the House of Lords in the UK have shown their support for the digital assets property bill proposed by the Law Commission. This bill aims to provide clarity on how cryptocurrencies are treated within the legal system and is seen as a positive step forward for the country in terms of crypto regulation.
The bill, introduced in September and drafted by the independent statutory body Law Commission, adds a new category of “thing” under property to help resolve legal disputes involving crypto. During the debate in the Lords Grand committee, Lord Frederick Ponsonby of Shulbrede highlighted the importance of the bill in maintaining the country’s global jurisdiction and adapting to the evolving nature of digital assets.
Not only will the bill assist in criminal proceedings where crypto has been stolen due to fraud or hacking, but it will also play a role in the division of matrimonial property. Lord Chris Holmes of Richmond emphasized the potential impact of the bill despite its concise nature, while Baron Thomas of Cwmgiedd described it as a “critical change” that should be internationally competitive.
In terms of regulation, the UK introduced legislation last year to regulate crypto activities and was in the process of consulting on further rules. However, with the new Labour government taking over from the crypto-friendly Conservatives, plans for the sector were left uncertain. Lord Ed Vaizey called for the new government to assess the effectiveness of promotional rules and clarify its stance on crypto, to which Lord Ponsonby responded by mentioning the ongoing work by the Treasury and the Financial Conduct Authority on regulating crypto assets.
Economic Secretary Tulip Siddiq stated in October that the government was reviewing previous plans for crypto and would soon outline its policy program for crypto assets. This demonstrates the government’s commitment to addressing the regulatory challenges posed by the crypto industry.
Overall, the support shown by the House of Lords for the digital assets property bill signals a positive development for the crypto sector in the UK. By providing clarity and legal frameworks for cryptocurrencies, the country aims to position itself as a leader in this rapidly evolving space. It will be interesting to see how the bill progresses through the legislative process and what impact it will have on the crypto industry in the UK and beyond.