LawtechUK, a government-backed and industry-led group tasked with promoting the use of English law and the UK’s jurisdictions in the context of novel technologies, has determined that the UK legal framework is fit for purpose in relation to the issue of digital securities.
The assessment will provide legal clarity for market participants conducting transactions in debt or equity securities issued and/or transferred using distributed ledger technology (DLT) or blockchain-based systems.
The new legal statement, issued by Lawtech's UK Jurisdiction Taskforce (UKJT), follows an open consultation that closed on 30 November 2022.
Linklater's UK head of fintech, Richard Hay, was one of the draftspersons of the UKJT’s legal statement
“The conclusion that it is possible to issue digital securities under English law, without the need for any further legislation, is a major milestone," he says. "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 on the status of cryptoassets and smart contracts and published digital dispute resolution rules for on-chain digital relationships and smart contracts.