The U.K. should create a tailored framework for using crypto as collateral, a Law Commission funded by the Ministry of Justice said in a Wednesday report.
. It also wants the government to set up “a panel of industry-specific technical experts, legal practitioners, academics and judges” to advise courts on complex legal issues relating to digital assets. While the legal systems of England and Wales are well-placed to support the U.K. government’s attempts to bring crypto into the scope of existing legal frameworks, some areas may need specialized treatment to accommodate digital assets, the Commission said in a press statement shared with CoinDesk.
“As such, we recommend that, as a matter of priority, the Government sets up a multi-disciplinary project to formulate and put in place a bespoke statutory legal framework that better and more clearly facilitates the entering into, operation and enforcement” of certain crypto collateral arrangements, the commission said.