Wales, English laws ‘sufficiently resilient’ for crypto — with a few tweaks

The Law Commission’s recent paper on digital assets was intended to enhance the legal framework in England and Wales and “secure UK’s position as global crypto hub”

article-image

Blablo101/Shutterstock modified by Blockworks

share

The Law Commission of England and Wales determined that the common law of England and Wales possesses enough flexibility to accommodate cryptocurrencies. However, a few areas require further clarification.

In a paper released Wednesday, June 28, the commission found that “although some digital assets are not easy to place within traditional categories of things to which personal property rights can relate, this does not prevent them from being capable of attracting personal property rights, and that this is clearly the position at common law.”

One of the suggestions that the commission makes is to develop a third category within personal property rights that could house digital assets such as NFTs.

Loading Tweet..

A set of criteria would be necessary and would include assets that are “composed of data represented in an electronic medium, including in the form of computer code, electronic, digital or analogue signals.” 

It also includes assets that are rivalrous — meaning that the consumption of the object by a person or persons “necessarily prejudices” the consumption of the object by another person or a group of people.

“The law reform that we do recommend aims to ensure that the legal system, as part of a wider social framework, can reinforce the overall strength of digital asset ecosystems (which also rely on social elements),” the report said.

The findings come after an open period of feedback and previous papers on the legal framework necessary to include digital assets. Following the research, the commission noted that some digital assets are not “entirely analogous with conventional tangible things,” which differentiates them from “tangible things in possession.”

Because of the way laws operate, the commission believes that simply adding new categories that encompass crypto and emerging crypto technology will suffice, preventing the need for a new set of laws specifically focused on crypto, a stance that differs from earlier papers.

Last July, the commission wrote, “The consultation paper argues the law must therefore go further to acknowledge these unique features, which in turn would provide a strong legal foundation for the digital assets industry and for users.”

The commission, in addition to its findings on the current legal framework, believes that the government should create a panel of experts — composed of industry experts, lawyers, academics and even judges — who can weigh in on the advancement of digital asset technology and give the necessary guidance in the field.

“We conclude that, although some digital assets are not easy to place within traditional categories of things to which personal property rights can relate, this does not prevent them from being capable of attracting personal property rights, and that this is clearly the position at common law,” the paper said.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Tokenized private equity is the next “greatest” opportunity, BWR analyst Carlos Gonzalez Campo writes

article-image

Today Blockworks is launching Analytics 2.0, our greatly improved crypto data and analytics platform

article-image

Ethena and Securitize’s Converge will launch within the next three months

article-image

Sponsored

Ledn has positioned itself as a trusted CeFi leader in Bitcoin-backed lending

article-image

Yesterday marked the five-year anniversary of Solana’s genesis block

article-image

The Digital Asset Summit will feature TradFi and government reps speaking on broader adoption and who’s buying in