The UK government introduced a proposed law which officially recognized cryptocurrencies as well as non-fungible tokens (NFTs).
You can also find out more about this by clicking here. billIt is intended to clarify the legal status of digital assets in order to help protect their owners, businesses, and themselves from scams and fraud. The bill also aims to help judges handle complex cases in which digital assets are involved in disputes or settlements such as divorce proceedings.
It adds to the existing legislation. “third” Add a new category of property to the current classifications for personal property. “things in possession” The physical items, such as automobiles. “things in action” (Rights such as Debts). This category covers digital assets and recognizes them as UK property.
This draft also suggests creating or appointing an expert panel that specializes in the markets for crypto-tokens. The experts will provide non-binding advice on matters related to the control of digital assets and any other issues that might arise within the cryptosphere.
The UK wants to be a leader in the crypto-industry by becoming one of the first countries to legislate these assets. Justice Minister Heidi Alexander emphasized, “It is essential that the law keeps pace with evolving technologies.” Alexander said that this legislation would help to keep the UK as a leader on the global stage in terms of cryptoassets and provide much needed clarity in cases concerning digital property.
The legal status of NFTs, and other digital assets has received increased global attention. The Digital Chamber in the U.S. is a group that advocates blockchain technology. classify some NFTs as consumer goodsThe SEC has recently taken enforcement action. Recently, the SEC took action against OpenSeaSome NFTs are traded through the platform, and they claim that these NFTs are securities.
In the U.S., the current regulatory framework has caused some artists and companies to leave the NFT sector. The NFT market is expected to grow by 2023. SEC fined Impact TheoryLos Angeles-based Media Company, $6,1 million, for the sale of unregistered NFT Securities known as “Founder’s Keys.”
After these actions the NFT industry has started to suffer, with a dramatic decline in price. Prices of high-profile NFTs such as Bored Ape Yacht Club have fallen. plunge by up to 80%.
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Source: blog.cryptoflies.com