Digital Assets (Scotland) Bill: equality impact assessment (EQIA) screening

Screening

Policy Aim

The Digital Assets (Scotland) Bill will implement recommendations of the Digital Assets in Scots Private Law: Expert Reference Group (“ERG”). The Bill will clarify the legal status of digital assets as objects of property in Scots private law. The Bill will also make provision for the ownership and transfer of ownership of digital assets, and will confirm that the general principles of Scots private law are applicable to digital assets. The overall policy aim is to provide greater legal certainty that digital assets are objects of property, to give individuals and businesses who create, transact or invest with digital assets greater confidence.

The primary purpose of the Bill is to provide greater legal certainty by confirming digital assets can be objects of property under Scots law. The Bill will make provision to clarify that certain kinds of digital asset can be objects of property in Scots private law, with reference to defining statutory characteristics. The Bill will categorise the type of property digital assets are and also detail some key features as to how digital assets will operate in property law, namely with respect to how ownership is established and the rules governing the acquisition of ownership. It is not intended for the Bill to codify all of the legal principles or rules applying to digital assets or cover a large number of matters concerning digital assets in various areas of private law. The Bill will be a short and focussed piece of legislation, that will have a narrow scope of application.

Who will it affect?

The policy will impact individuals and businesses who create, transact with or invest in digital assets. The Bill will clarify that digital assets can be objects of property and to produce basic rules that are clear, certain and accessible and remove the risk that digital assets are operating in an area that lacks legal certainty.

Those choosing to engage with digital assets can come from any group or community of people and so this legislation has the potential to impact on any person who wishes to create, transact with or invest in digital assets, either in an individual personal capacity, in the course of business or some other capacity.

What might prevent the desired outcomes being achieved?

The desired outcomes would not be achieved if the Scottish Parliament did not pass the Bill or if it was amended in a way that would not achieve the intended certainty within Scots private law.