Current project status
The current status of this project is: Pre-consultation.
List of project stages:
- Analysis of responses
- Initiation: Could include discussing scope and terms of reference with lead Government Department
- Pre-consultation: Could include approaching interest groups and specialists, producing scoping and issues papers, finalising terms of project
- Consultation: Likely to include consultation events and paper, making provisional proposals for comment
- Policy development: Will include analysis of consultation responses. Could include further issues papers and consultation on draft Bill
- Reported: Usually recommendations for law reform but can be advice to government, scoping report or other recommendations
Ensuring the law is ready for an increasingly digitised world
In the commercial world, trade and transactions are already extensively digitised, and yet legislation implemented more than a century ago is preventing businesses from adopting entirely paperless processes.
For example, the reluctance of English law to recognise the possibility of “possessing” an intangible asset means that such assets are excluded from several significant legal processes and protections, for which possession is a pre-requisite. This means that commercial assets are currently afforded very different legal treatment depending on whether they are in digital or physical/paper form. An electronic document cannot, for example, constitute a document of title under the Bills of Exchange Act 1882. This can cause considerable commercial difficulties, particularly in the context of international trade finance.
The Law Commission has been asked by Government to make recommendations for reform to ensure that the law is capable of accommodating both cryptoassets and other digital assets in a way which allows the possibilities of this technology to flourish.
In the first instance, the Law Commission will consider the issue of possession, particularly with regard to documents of title, documentary intangibles and negotiable instruments. Our work will build on the conclusions of the recent Legal Statement on the Status of Cryptoassets and Smart Contracts by the UK Jurisdiction Taskforce of the LawTech Delivery Panel.
We intend to publish a consultation paper and draft legislation on the digitisation of trade documents such as bills of lading and bills of exchange in spring 2021. Our final recommendations are due in early 2022, after which it will be for government to decide whether and when to implement them.
We will begin our wider work on cryptoassets and other digital assets in early 2021
To contact us, or to be added to our mailing list and receive updates about this project, please email firstname.lastname@example.org
Area of law
Commercial and common law
Professor Sarah Green