Digital Assets: Law Commission Consults On Private International Law Issues And Draft Legislation Recognising A Third Category Of Personal Property Rights

• Published date: 07 March 2024
• Law Firm: Herbert Smith Freehills
• Author: Mr Chris Bushell, Rachel Lidgate, Ajay Malhotra, Charlie Morgan, Maura McIntosh and Philip Lis

On 22 February 2024, the Law Commission published two documents relating to digital assets: (i) a call for evidence on private international law issues relating to digital assets and electronic trade documents; and (ii) a consultation on draft legislation to confirm the existence of a third category of personal property for assets such as crypto-tokens.

The English courts have repeatedly demonstrated the flexibility of the common law in applying traditional concepts to novel circumstances and new types of asset, including cryptocurrency and NFTs. However, the Law Commission's continued activity in this area, with a view to implementing targeted reforms, aims to increase legal certainty and facilitate the development of English law as a law of choice underpinning the use of blockchain technology. It is therefore to be welcomed.

Private international law

The call for evidence on private international law issues derives from a 2022 request from the Ministry of...