·

U.K. recognizes cryptocurrencies as ‘tradable property’

U.K. recognizes cryptocurrencies as ‘tradable property’

A specialized task force of senior judges and lawyers in the U.K. has recognized crypto-assets as “tradable property” under English law. The 46-page legal statement, which clarified the status of cryptocurrencies, blockchain technology, and smart contracts, is the country’s effort to reintroduce confidence to the British crypto market.

Huge step underway to understand crypto industry in the U.K.

The cryptocurrency market in the U.K. has gotten a lot clearer on Monday, as cryptocurrencies were officially recognized as tradable property. The decision is a result of an industry-led effort by the Lawtech Delivery Panel (LDP), a government-backed initiative working to improve the British tech industry.

The U.K. Jurisdiction Taskforce, one of six panels under the LDP, published a paper in which it resolved all of the legal uncertainties surrounding cryptocurrencies and distributed ledger technology (DLT).

High Court chancellor Sir Geoffrey Vos said the initiative was a watershed moment for the U.K. as it addressed “difficult legal topics in a very approachable and intelligible manner.” This is the first time a jurisdiction in the country attempted to understand the industry, he said in a statement.

British law recognizes and defines cryptocurrencies

According to the 46-page legal statement, cryptocurrencies, or “cryptoassets,” are tradable property. The statement also recognized smart contracts as valid agreements that are enforceable under local British law, an important distinction that could open up a myriad of new applications for blockchain technology.

U.K. entrepreneur network Tech Nation said this could revolutionize agreements and drastically improve settlement processes for everything from mortgages and medical research to property ownership.

With the World Economic Forum predicting that 10 percent of the global GDP will be stored on the blockchain by 2027, efforts like the one undertaken by the U.K. Jurisdiction Taskforce show that new technologies are being embraced at a rapid pace.

Jenifer Swallow, the director of the Lawtech Delivery Panel, said that a common-law initiative like this supports business growth, clarity in law, and evolution of new tech.

Earlier in September, the country’s capital, London, became the world’s most active fintech hub by the number of fundraising deals. This makes it a fertile ground for crypto and blockchain innovation, as there seems to be plenty of optimism in the market.

The overwhelmingly positive sentiment when it comes to fintech and crypto businesses in the country also seems to be resilient to the uncertainty surrounding Brexit.

A clean bill like this is bound to put blockchain technology into the spotlight and put the U.K. on the map as a leader in crypto innovation.

Posted In: , Regulation

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Priyeshu Garg
Author

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.