Following the European Union’s attempt to regulate Web3 assets through a regulation called Markets in Crypto-Assets (MiCA) in 2020, the UK’s Law Commission has established that the UK should create a private property law for crypto and NFTs.
About The New Laws
If implemented, the proposed legal reforms would allow people who are affected by crypto and NFT scams to seek legal action. Also, the laws would mean that crypto and NFTs would be defined as personal property.
These prospective legal reforms align with the UK’s ambition of becoming a crypto-friendly global hub.
Earlier this year, the UK’s previous finance minister, Rishi Sunak, asked the Law Commission to review the country’s crypto law. Sunak did this to accommodate Web3 digital assets such as crypto and NFTs. This action suggests that the UK is serious about welcoming crypto and NFTs. What’s bullish is that Rishi Sunak is running to become the next Prime Minister of the UK, following Boris Johnson’s resignation. If he is successful, then this could be very beneficial for our precious digital assets.
In addition, financial regulators recently proposed that Parliament recognises stablecoins as a form of legal payment.
The UK’s Position In Cryptocurrency
There is no denying that the UK is quickly becoming a crypto and NFT hub. Many of its actions suggest that they want to welcome, accommodate and adopt digital assets. However, the Financial Conduct Authority (FCA) has yet to create a fully regulated landscape. Before we get too excited or can progress any further, we will need a regulatory framework put in place to support the Web3 industry in the UK. Only then can we assume that we are getting closer to mass adoption.
It is worth noting that these reforms only apply to Britain. As Northern Ireland and Scotland have their own legal commissions, they will not be affected.