The UK Jurisdiction Task force is looking at the way in which English law can support the issue and transfer of equity or debt securities on blockchain and DLT systems. The statement will follow its work over recent years on the status of cryptoassets and smart contracts (in 2018) and its digital dispute resolution rules (in 2021).
The new proposed Legal Statement on Digital Securities will clarify the availability of English law as an option for constituting digital securities, as the current absence of such a statement is causing concern that English law may be less supportive of digital securities than other jurisdictions which have already introduced tailored legislative frameworks to support the commercial use of blockchain and DLT.
The consultation asks:
- whether digital securities can validly be issued under English law using a blockchain or DLT-based system;
- in what legal form(s) are digital securities capable of being issued, in addition to registered form;
- can a blockchain or DLT-based system be used as a register of digital securities; and
- is blockchain or DLT-based system for digital securities required to comply with the requirements of the Uncertificated Securities Regulations 2001
It asks for comment by 23 September.