The UK may soon recognize crypto assets as a new type of personal property, according to the Law Commission, an independent authority, Reuters reported on Wednesday.
The Commission published research on Wednesday, commissioned by the government, that explored the legal status of digital assets such as cryptocurrencies and non-fungible tokens (NFTs).
The research found that digital assets do not fit into the existing categories of personal property, which are “things in possession” (physical assets such as gold) and “things in action” (such as debt or shares in a firm).
Therefore, the Commission proposed creating a third category of “digital objects” to cover digital assets, Reuters report added.
This new regulatory suggestion comes just as Upper House of UK Parliament approved Financial Services and Markets Bill, which means the country is moving towards regulating crypto assets.
The Commission also recommended that the government establish an expert panel to provide guidance to courts on legal issues involving digital assets.