June 27 (Cointime) - The Law Commission funded by the Ministry of Justice has recommended that the UK create a bespoke statutory legal framework for using cryptocurrency as collateral, which goes beyond existing regulations for traditional finance.

The Commission also reiterated its previous call for crypto assets to be treated as a new type of property, and proposed the establishment of a panel of industry-specific experts to advise courts on complex legal issues relating to digital assets.

The report was the result of the first ever government-commissioned analysis in the UK on how existing legal frameworks can accommodate crypto and non-fungible tokens. The Commission's proposals do not apply in Scotland or Northern Ireland, which have their own legal systems.