Linklaters assists the UK Jurisdiction Taskforce on new Legal Statement for Digital Securities
Linklaters has assisted the UK Jurisdiction Taskforce (UKJT) of 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, in relation to a new legal statement that will provide legal clarity for market participants in digital securities.
Digital securities – debt or equity securities issued and/or transferred using distributed ledger technology (DLT) or blockchain-based systems – have grown in importance as digital transformation becomes an area of focus for many institutions operating in the financial markets.
The statement concludes that the existing framework of English law supports the transfer and issue of securities on blockchain or DLT. It highlights the benefits of the inherent flexibility of English law, which readily adapts to the changing commercial needs in the digital economy and more generally, and reinforces the UK’s position as a leading jurisdiction for internationally mobile transactions.
The new legal statement follows an open consultation that closed on 30 November 2022. Sir Geoffrey Vos MR chaired the UKJT, supported by committee members, including Linklaters’ UK Head of Fintech Richard Hay, who was one of the draftspersons of the UKJT’s legal statement, together with David Quest KC (3 Verulam Buildings), Lawrence Akka KC (Twenty Essex), Matthew Lavy (Pump Court), and Sam Goodman (Twenty Essex). Linklaters’ partner Michael Voisin and senior associate Sophia Le Vesconte also contributed to successive drafts.
Richard Hay, 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. 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.”
Further information on the new legal statement and research for digital securities can be found here.
