The Law Commission of England and Wales initiated a consultation on proposed legislation to classify cryptocurrencies and NFTs as property.

A report from the independent statutory body stated that crypto tokens and non-fungible tokens (NFTs) could be accorded property rights. The commission has called for public feedback by Mar. 22 to further this initiative.

Highlighting the importance of personal property rights in the event of insolvency or unlawful interference, the Law Commission noted the unique challenges of digital assets.

Unlike traditional physical or rights-based assets such as debts and financial securities, digital assets defy conventional personal property categories, necessitating reevaluating existing legal frameworks.

The Law Commission is seeking insights for its ongoing project on digital assets and electronic trade documents within private international law, with a deadline for submissions set for May 16.

According to Sarah Green, the commissioner for commercial and common law, the digitization and decentralization of assets present significant hurdles to current private international law mechanisms in addressing jurisdictional and legal conflicts.

The consultation aims to gather experiences and challenges in commercial and legal practices involving digital assets and electronic trade documents.

Feedback received will shape the final proposal of the crypto as property bill for government consideration and inform subsequent phases of legal reform efforts, particularly in light of the recent enactment of the Electronic Trade Document Act, which facilitates the digitization of trade documents in the United Kingdom.