The United Kingdom now classifies cryptocurrencies as property under the latest jurisdiction.
English law to treat cryptocurrencies as property as per the latest ruling
According to The Times report, a legal panel chaired by Sir Geoffrey Vos decided to classify cryptocurrencies as property. The ruling declared that digital assets including Bitcoin possess all ‘indicia of property.’ The decision also noted that crypto assets with unique characteristics would also be treated as property in the UK.
The UK is not the first country to categorize crypto assets as ‘property.’ Previously, Israel and China have recognized cryptocurrencies as property.
The panel’s decision showed appreciation towards considerations for the refined regulation of crypto assets. The ruling equates private keys with signatures hence justifying the classification as property.
In English law, a valid signature must be performed with “wet ink.” This means that digital signatures are also comparable to wet ink signatures under the highest echelons of the UK legal system.
According to Sir Geoffrey, refined regulation would establish a difference between current laws and enacting legislation.
The ruling might pave the road for proper crypto regulations in the United Kingdom. Sir Geoffrey hopes that the legislation goes a long way towards “providing much-needed market confidence.” The panel hopes that it would provide “legal certainty” in areas that hold great significance to the global financial services industry.
Meanwhile, the United States’ Internal Revenue Service (IRS) has declared crypto assets to be intangible property for tax purposes. The agency has also shifted focus towards crypto ATMs and is currently investigating the sources of their funds. The IRS is also curious to see whether these ATMs have any link to a banking institution.
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