Last Updated on October 18, 2022 by Bitfinsider
Through a government-funded initiative, the Law Commission of England and Wales will examine private international legal problems involving cryptocurrencies.
The 18 October review will clarify how international law addresses emerging technologies such as cryptocurrency, digital assets, and electronic documentation.
The law reform project titled “Digital Assets: Which Law, Which Court?” will examine existing international legal principles and their application to digital contexts with the goal of recommending legal amendments to maintain the relevance of United Kingdom laws.
The Ministry of Justice is sponsoring this initiative, which aims to create reform recommendations for public consultation by the second half of 2023.
The release emphasized that the spread of blockchain technology has resulted in a number of conflicts of law, hence creating legal confusion for consumers, companies, and governments.
Consideration of which courts have the authority or jurisdiction to hear disputes and which laws should be applied is a significant obstacle. The digital characteristics of cryptocurrencies and digital assets such as nonfungible tokens (NFTs), which are intangible, distributed, and impossible to define geographically, further complicates legal problems.
In a statement, Sarah Green, law commissioner for commercial and common law, emphasized the complexity of handling legal disputes regarding the expanding field. She said: “With digital assets and other emerging technologies developing rapidly in recent years, the laws that support and govern them have struggled to keep pace. This has led to inconsistencies across jurisdictions, with uncertainty over which laws should be applied and which courts should rule on them.”
The declaration also emphasized its intention to assist innovative digital technologies such as cryptocurrencies in the United Kingdom, which aims to become a hub for cryptocurrency adoption.
Several law reform initiatives including smart contracts, digital assets, and decentralized autonomous organization electronic trade papers have been undertaken by the Law Commission.
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