This Monday a working group supported by the UK authorities, including prominent judges and lawyers presented a legal opinion according to which crypto assets, including cryptocurrencies, are “available for circulation property”, and smart contracts are “an enforceable contract”.
“We officially declare that crypto assets have all characteristics of property. As far as we know, the status of crypto assets in this capacity has not been established by any governing precedent in any of the common law jurisdictions”, – the 46-page document states.
High court Chancellor Geoffrey Vos, who is the chairman of the working group, described today’s publication as highly significant because it throws light on a number of “complicated legal topics in an accessible way”.
“The working group has provided much-needed market confidence and legal certainty regarding common English law in the industry which is the key to the successful development and use of crypto assets and smart contracts in the global financial services industry and beyond”, – he said.
It is assumed that the official statement of the lawyers will stimulate to the further spread of cryptocurrencies and smart contracts in the UK, as well as the development of the companies engaged in this industry.
“Smart contracts can be used to create more secure and efficient ways to execute agreements between participants. They are able to transform agreements, as they automatically carry out transactions and exclude the need of mediator”, – the judges declare.
Representatives of the technology and financial industries were involved in the drafting of the document. It does not contain a final definition of cryptocurrency, but it confirms the possibility of using crypto assets in contract agreements. In the future, the Commission of Legislation intends to consider the need of developing a separate legal basis for the cryptocurrency sector.