A legal statement by the UK Jurisdiction Taskforce pushed cryptocurrency another step forward towards legal certainty in the UK.
Once dismissed by national governments and traditional financial institutions, cryptocurrencies are slowly forcing their way into mainstream adoption. Many businesses are now developing projects based upon blockchain, the innovative technology underlying virtual currencies, and a number of governments are looking at how best to regulate Bitcoin and other cryptocurrencies. Now another step towards legal certainty in the United Kingdom for crypto has taken place with the publication of a new legal statement.
Cryptocurrency Calling
The new statement was issued by the UK Jurisdiction Taskforce and recognized cryptoassets as tradable property and smart contracts as enforceable agreements under English law. This statement was compiled after six months of consultation and offers some new (and welcome!) clarity in regard to the regulation of cryptoassets.
Chancellor to the High Court Geoffrey Vos says:
In legal terms, cryptoassets and smart contracts undoubtedly represent the future – I hope that the legal statement will go a long way towards providing much needed market confidence, legal certainty and predictability in areas that are of great importance to the technological and legal communities and to the global financial services industry.
Jenifer Swallow, director of the Lawtech Delivery Panel, added:
It is great to see the adaptability of our common law system to fast-changing technology, demonstrated in this landmark legal statement from the UKJT; Tech Nation is excited to work with the Lawtech Delivery Panel on leading initiatives such as this, to support business growth, clarity in law and the evolution of new tech.
Should I Crypto or Should I Go?
The Bank of England, under the governorship of Mark Carney, is warming up to cryptocurrency despite the fact that Carney was a noted critic of Bitcoin for quite a few years.
Carney recently noted that the Bank of England is examining ways for companies in the cryptocurrency and blockchain ecosystem to access the bank’s payment system and even keep funds at the bank overnight.
Back in August, Carney noted:
Retail transactions are taking place increasingly online rather than on the high street, and through electronic payments over cash.
Carney has been somewhat supportive of the Libra, even going so far as to meet with Mark Zuckerberg. The Bank of England has said Libra could become “systemically important” to the financial system, but in order to do so, the Libra will have to meet the highest standards by having the “same level of operational resilience and safeguarding as the use of debit cards to make payments from current accounts.”
Images courtesy of Pixabay.