The Law Commission for England and Wales has published a report on the regulation of cryptoassets, aiming to position the UK as a global leader in this field. The report, titled “Cryptoassets and Smart Contracts: Law, Regulation and Governance,” was released on June 20, 2023.
It proposes several recommendations, including the creation of a new legal status for cryptoassets, regulation of cryptoasset exchanges and intermediaries, and the establishment of a regulatory framework for smart contracts.
To implement these recommendations effectively, the report suggests the formation of a “Cryptoassets Taskforce” under the UK government’s supervision. This report is crucial as it represents the first comprehensive review of cryptoasset regulation in the UK. Comes at a time when the government is actively considering regulations for cryptoassets.
The adoption of these recommendations by the government would significantly impact the cryptoasset industry in the UK. By establishing a transparent and consistent regulatory framework, the UK could emerge as a global leader in this domain.
Key takeaways from the report include the need for a clear legal status for cryptoassets to provide clarity to businesses and consumers, the regulation of cryptoasset exchanges and intermediaries akin to traditional financial institutions, the development of a regulatory framework for smart contracts, and the creation of a “Cryptoassets Taskforce” to oversee the implementation of the recommendations.
Overall, this report is a positive step for the UK’s cryptoasset industry. It clarifies the regulatory landscape, potentially attracting businesses and investments to the country.
