In June 2023, the Law Commission for England published its report on digital assets, which recommended changes to the law to reduce legal uncertainty around cryptocurrencies and other digital assets.

"Personal property rights are important for many reasons, including in the event of insolvency or in the event of interference with or unlawful seizure of assets," the commission's report stated. “However, because digital assets differ significantly from physical and rights-based assets, they do not fit into traditional categories of personal property.”

The consultation is accompanied by a request from the Law Commission for evidence on a separate project related to digital assets and electronic trade documents in private international law. Comments on the draft crypto-asset law are due by March 22, while the deadline for the private international law draft is May 16.

The Bill and parallel drafts are the result of years of review by the Law Commission and aim to provide greater legal clarity and protection for users of crypto assets. If successful, they could also help the UK government achieve its goal of making London a global hub for cryptocurrency innovation and investment.