UK Law Commission Urges Clarity on Cryptocurrency Lending Regulations

UK Law Commission Urges Clarity on Cryptocurrency Lending Regulations

The UK's Law Commission has recommended further clarity on whether cryptocurrency lending falls under existing financial collateral regulations. The commission's review of British laws concerning digital assets has resulted in four major recommendations to the UK government. These include creating a distinct category of personal property for cryptocurrencies, establishing an industry-specific panel and legal framework for crypto-related assets, and clarifying whether cryptocurrencies are covered by the UK's Financial Collateral Arrangements Regulations (FCAR). The commission emphasized the importance of FCAR in facilitating asset security and called for a review to determine if the regulations apply to digital assets.