After months of consultations, research, and review, the United Kingdom law commission has finally put together a framework. The proposed framework has been published by the commission, waiting to be debated and disputed.
U.K. Propose Law to Regulate Crypto Property Acquisition
The United Kingdom law commission is bent on regulating its cryptocurrency sector, protecting innocent users from being scammed by criminals. The U.K commission is on the brink of finishing its cryptocurrency policy structure.
Recently, the regulatory committee published an advisory paper focusing on the user’s right to crypto property acquisition. The consultation paper was published to decipher the importance and use of a regulatory framework for the cryptocurrency space/industry.
The published work also recognized the importance of cryptocurrencies and digital properties in the present world. However, innocent users must also be protected to avoid being defrauded by Ponzi schemes, cybercriminals, fake companies, and firms. The creation of the legislation deciphers the importance of digital assets; its only aim is to create a safe crypto space.
‘User considers some digital assets/cryptocurrencies as property. Therefore, their rights and properties are important to society and the country. Their rights must be protected from infringement by the legal commission and other appropriate bodies’ – U.K. Law Commission.
An excerpt from the property acquisition law shows how the transfer of cryptocurrencies from an existing owner to another body should be regulated and done. It also covers that if a user/investor buys a digital asset without knowing the proper claims from the selling party, the user would be the coin’s owner if a dispute happens. The U.K commission stated that the United Kingdom aims to become the best, most flexible, and unique legislation in the cryptocurrency space and sector.
Regulatory Framework and Structure Trend in Cryptocurrency
Regulation of the cryptocurrency space has been a trend in different countries for the past few months. Lawmakers keep rolling out policy structures and frameworks to regulate the activities of crypto users, companies, platforms, traders, etc.
After lawmakers roll out their policy structures, Security and Exchange Commission and other federal agencies will also make their laws for crypto companies and platforms.
These frameworks are being developed with the intent of creating a safe cryptocurrency space for users and also reducing the advent of scams and fraud. However, in some countries, the law seems to be going overboard and making the space hostile for users.
Some of these laws and policy structures are mostly not applicable in the crypto space, making the space inconducive. Recently the United States Security and Exchange Chairman, Mary Gensler, was called out over abuse of power.
A U.S lawmaker called out the chairman, stating that the commission was making the space hostile for companies and users. These are examples of how these laws can prove more harmful than helpful for crypto companies and platforms. Enforcement of such laws will only keep causing problems for cryptocurrency users, holders, investors, and traders.
The cryptocurrency space in some countries is beginning to crumble and collapse gradually. If the hostile framework keeps getting enforced, crypto platforms and countries will be forced to stop their services in such countries.