England and Wales are among the jurisdictions “unlikely” to identify cryptocurrencies as legally enforceable property, according to a research paper published in the Journal of Law and Technology (JOLT) at the University of Richmond in the US.
As a result, although digital tokens are technically secured through blockchain technology, the level of legal protection is unclear.
Johan David Michels, one of the authors of the paper, explained in an article that in legal terms, there are two main types of properties — land or “real properties” and “personal property.” The latter includes rights over “things in possession” — tangible items you can physically possess and transfer to another, and “things in action,” which include debts, rights under contract, and intellectual property.
“So what about digital tokens such as crypto-currencies? Tokens don’t physically exist. They are entries on a virtual ledger....
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