The UK on cryptoassets‘ legal status

The end of 2019 saw some important news about cryptoassets. An official statement regarding cryptoassets and smart contracts was published by a dedicated working group in the UK. Let’s take a closer look at what exactly the statement was about and how it could affect businessmen that plan to register their own crypto company in Great Britain.

Results of the release

The working group’s release is not a legal statement, yet it’s goal is to inform the market participants about a clearer legal definition of cryptoassets. The reason for only the informational character of the release is the continuing uncertainty during the court proceedings that involve questions such as cryptocurrencies or tokens.

This brings us to the fact that British researchers came to the conclusion that cryptoassets should be viewed as property. Some argue that cryptoassets are intangible. Yet the statement does not consider this a reason to not treat them as property. The general public nowadays is also inclined towards considering cryptoassets property, which is an important fact to keep in mind for future crypto businessmen.

Update of the statement

During September 2020, the legal framework for cryptoindustry was one of the key priorities for the European Commission. The goal was to make international payments faster and cheaper via blockchain technology and cryptoassets. As the Commission said, the relevance of wire transfers became even more significant due to the pandemic.

In addition to the EU’s efforts, Switzerland worked on amending its legislation, too. The law is to enter into force in early 2021. Its focus is on creating a friendlier environment for decentralized finance, development of digital stocks of companies and other tradable assets.

For a better understanding of what awaits you if you decide to register a crypto company in the UK or the EU, legal advice is an absolute must. The best choice would be COREDO. Contact our office to arrange a consultation where our specialists will provide you with the necessary assistance for crypto business.