LawtechUK, a government-backed and industry-led initiative focused on promoting the use of English law and the UK’s jurisdictions in the realm of emerging technologies, has concluded that the UK legal framework is adequate for addressing issues related to digital securities.
The assessment aims to provide legal clarity for market participants engaged in transactions involving debt or equity securities that are issued and/or transferred using distributed ledger technology (DLT) or blockchain systems.
This new legal statement, released by Lawtech’s UK Jurisdiction Taskforce (UKJT), follows an open consultation that concluded on 30 November 2022.
Richard Hay, Linklaters’ UK head of fintech, contributed to the drafting of the UKJT’s legal statement. He remarked, “The conclusion that it is possible to issue digital securities under English law, without the need for any further legislation, is a major milestone. It brings certainty to the digital securities market and reinforces the role that English law plays in the UK’s continued position as a global leader in financial services.”
The Taskforce has previously published legal guidelines regarding the status of cryptoassets and smart contracts, along with digital dispute resolution rules for on-chain digital relationships and smart contracts.