UK to recognise Bitcoin as a “Property for Legal Protection”
The UK authorities decided to add cryptocurrencies under a legal property class, to protect digital assets holders.
The UK is a very big hub of cryptocurrencies and is known for its strict rules & laws against cryptocurrencies. In the jurisdiction of the UK, only a particular number of crypto companies are actively providing crypto services. As per reports, it is very tough to get a chance for any new crypto firm to establish business in the UK. Many times the UK’s authorities were criticised by the crypto companies executives over the partial approach toward new crypto companies & bad regulation.
In the latest, the Law Commission of the UK has put forward a proposal for a new legal framework that would treat cryptocurrencies as property.
This latest development aims to clarify and safeguard cryptocurrencies under the existing law. By considering digital assets as a unique kind of personal property, the proposal aims to increase the legal clarity surrounding cryptocurrencies.
However, this legislation is in the initial phases & there are a lot of uncertainty in getting approval. Once it is approved then it will strengthen the enforcement of property rights in cases involving cryptocurrencies. This development is crucial for resolving legal issues related to digital assets, offering better protection for individuals and businesses engaged in the crypto market.
America’s impact on the UK in 2023
However, the UK & US have different Jurisdictions but still it was found many times that UK lawmakers & other traditional companies followed similar kinds of steps in the same period.
In Q1 2023, following the bankruptcy of multiple banks in the US, almost all the banks distanced themselves from the crypto companies and the same thing was seen in the UK’s Jurisdiction but in Q2.
In April 2023, Reportedly the majority of the new crypto startups were failing to get a new banking partner in both the jurisdictions and existing crypto-linked banking services provider banks were asking for additional information regarding the companies corresponding financial activities in the crypto sector.
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