UK provides legal clarity on issuance of digital securities via blockchain #
A government-backed group LawtechUK has identified the UK legal framework as fitting for issuing digital securities. This industry-led group aimed at promoting the use of English law and UK’s jurisdictions in relation to novel technologies.
This will provide legal clarity for parties that conduct transactions in debt or equity securities issued and/or transferred with distributed ledger technology (DTL) or blockchain-based systems. The legal statement issued by Lawtech’s UK Jurisdiction Taskforce (UKJT) follows an open consultation resolved on November 30th, 2022.
Richard Hay, Linklater’s UK head of fintech and one of the creators of the abovementioned UKJT’s legal statement, commented: “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.”