Digital assets in Scots private law: consultation

Ministerial foreword

Scotland is a well-established, globally competitive financial services hub and is the UK’s second financial centre after London, employing over 140,000 people. Our well-connected ecosystem is known globally for deep specialism in areas including asset management, banking, savings and pensions, with emerging areas of strength such as FinTech, AI, Green Finance driving innovation and growth.

Scotland also has an independent legal system, distinct from other UK jurisdictions, with Scots law able to trace its origins back to Roman law. Our laws need to be fit for purpose, so it is important that Scots private law supports and keeps pace with developments in innovation and financial technology. In some instances there is a need for legislative change to achieve reform, which is true of digital assets.

Digital assets are transforming the financial sector and present new economic opportunities; however, their legal status as property under Scots law requires greater clarity and certainty. The Scottish Government appointed an Expert Reference Group to review the existing legal framework to advise if legislative change was necessary. The Group is of the view that reform to our private law would be beneficial and provided several recommendations on how this could be achieved.

This paper is informed by those recommendations. The Scottish Government is open to views on how to best take forward our proposed reforms to Scots private law in respect of Digital Assets, and I look forward to considering each response carefully which will help inform our policy approach.