Crypto Asset Class Status Up in the Air by Government-Led United Kingdom Jurisdiction Taskforce (UKJT)
- United Kingdom assigned a task force to examine cryptocurrency and determine its status.
- United States and Liechtenstein establish task forces for their regulatory efforts.
One of the biggest reasons that cryptocurrency is still seeking out its path for widespread adoption has to do with the lack of regulations and even definition in many countries. Following the progress of other regions, the United Kingdom has appointed a team to help manage these concerns.
The new team has already made some progress, launching a public consultation that will help them figure out exactly what status the English private law should apply to cryptocurrencies.
The official statement on the matter says that the lack of certainty regarding this industry has kept investors from getting involved. With the new United Kingdom Jurisdiction Taskforce (UKJT), this uncertainty will hopefully subside.
The UKJT is only one of six different task forces that contribute to the LawTech Delivery Panel (LTDP), which combines the Judiciary and the Law Commission of England and Wales. The panel is also made up of experts in technology and the legal system. The UK Financial Conduct Authority has been a technical advisor in the initiative.
The only way that the market will see progress for smart contracts, which use blockchain technology, will be when confidence is not in such scarce supply for market participants and investors. As the UKJT sees it, the mainstream investors of the region need to make sure that the legal rights they already have will still be in place with the trading of the crypto market and under the smart contracts.
With these concerns in mind, the Taskforce has already begun work on a legal statement that will describe the status of smart contracts and crypto assets, based on the English law they would fall under. By explaining this status, answering the questions that investors have about crypto assets will become much easier, paving the way for mainstream use.
After the consultation concludes, it will be analyzed to provide the public with a legal statement from the UKJT, which is expected this summer. Once the publication goes out, the authorities will figure out if legislative change is needed for the regulation of digital assets in their area.
The consultation period is planned to continue until June 21st, though the public is encouraged to attend an upcoming event on June 4th to ask any questions that they need answered.
The United States has also been active in achieving the desired regulations, having just passed a resolution through the House of Representatives Financial Services Committee to launch a Task Force. The Task Force, which was announced on May 9th, will be dealing specifically with financial technology.
In Liechtenstein, new regulations on blockchain, tokenization, and virtual assets were recently passed. These regulations were developed to protect investors, combat money laundering, and bring clarity to how the industry will function under their jurisdiction.