A body of UK legal experts has launched a public consultation on the issuance and transfer of digital securities via distributed ledger technology (DLT).
The move from the government-backed UK Jurisdiction Taskforce (UKJT) is designed to determine what types of digital securities models are supported by English law.
According to UKJT, which is tasked with positioning UK law as “the law of choice for new technologies”, this will provide much-needed clarity to the market at a time when the use of digital assets is increasing rapidly across the asset management market.
It will also help the UK in its ambition to establish itself as a domicile of choice for digital assets, stated UKJT.
“A number of jurisdictions, including Luxembourg and France, have introduced tailored legislative frameworks to facilitate the commercial use of blockchain and DLT under their respective legal systems,” stated the group.
“However, no similar statutory regime has been introduced in the UK and there is some perception in the market that English law may be comparatively less supportive of digital securities,” added the statement.