The establishment of expert panels and the introduction of a legal framework for crypto collateral arrangements are two additional suggestions made by the Law Commission.
In a report released on June 28th, the Law Commission, comprised of solicitors, judges, and academics, made four specific suggestions.
These included rules for a new type of personal property, an industry advisory board, a unique legal framework for crypto collateral agreements, and a clarification of existing rules.
In its report, the commission concluded that existing laws protecting private property are “sufficiently flexible” to include cryptocurrencies. Cryptocurrencies are distinguished from conventional assets by a number of features.
The Law Commission recognised the need for a group of specialists to advise the court on cryptocurrency-related complex legal matters. According to the report, the panel should consist of technical experts, lawyers, scholars, and judges. It claimed that the current regulations on using cryptocurrency as collateral needed to be more adequate.
The commission also suggested statutory changes to clarify whether and to what extent particular cryptocurrencies comply with the Financial Collateral Arrangement Regulations (FCAR). The majority of digital assets are not expected to be covered by FCARs, per the report.
The article cites comments made by Justice Minister Mike Freer: “To guarantee that our legal system is prepared to deal with the challenges of emerging technology, we will give these results significant consideration as we work to fortify the future of our world-famous legal system—the report’s suggestions back up the government’s plans to become a crypto centre.”
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