The UK government is seen in plans to establish new regulations regarding crypto and NFT ownership.
This discourse emerged after the publication by the British Legal Commission, which is an independent state institution in the field of law related to crypto ownership law and NFT.
UK Government Plans to Form New Regulations
In the publication of research conducted by the agency, there is a statement that the UK Government currently does not have good regulations to protect crypto and NFT.
This means that the current law has not fully protected investors and owners of the two digital assets.
The current law in the UK regarding cryptocurrencies is that investors can buy and sell crypto assets on a spot basis. So it seems that derivatives markets such as futures are still prohibited.
In addition, currently, crypto is only allowed as an investment tool and not as a medium of exchange. In addition, the existing law does not fully address NFT, which makes the related law ambiguous.
The research report recommends that the UK create new regulations that better protect and monitor NFT and crypto trading transactions more deeply.
In the recommendation, it is written that the UK should create a new category in the law of personal asset ownership to represent digital assets.
This advice is given due to the significant discovery that cryptocurrencies and NFTs are very different in legal nature from other financial assets.
So there will be a lot of reproaches, and it will be difficult if there is a problem related to ownership or a violation or debate in the realm of court and law.
The aim of this new regulatory suggestion is seen as a way to continue to support the growth of cryptocurrencies and NFTs and make the UK more competitive when it comes to digital assets.
Everything is still in the form of a new regulatory plan. Still, it is said that if it is appropriately implemented, later, if there is an illegal duplication or forcible takeover of asset ownership, then the legal domain can be a solution to this problem. So basically, if implemented, investors will have special rights to crypto and NFT recognized by the state.
The UK Begins to Support Crypto
This step is significant given the history of the UK in recent years, which continues to resist crypto adoption.
One such example was when Binance, the world’s largest cryptocurrency exchange, was banned from use in the UK. Another example is when most banks in the UK are prohibited from helping the public and investors in crypto transactions.
It seems that in late 2021 to 2022, these restrictions are starting to ease; now, the government wants to support the growth of digital assets in the UK.
One example of its support is the new regulation related to the DAO or Decentralized Autonomous Organization which is being drafted by an independent state agency on orders from the UK Government.
The urgency of regulation of DAO is becoming increasingly high given the movement that continues to be an alternative to individuals who want to build ordinary companies.
So, for now, it looks like the UK will still support the growth of cryptocurrencies and NFTs but will strictly continue regulating the digital asset industry.
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