Consultation on Private International Law and Digital Assets Law Commission Proposes Landmark Reforms

On 5 June 2025, the Law Commission of England and Wales published a consultation paper entitled ‘Digital Assets and Electronic Trade Documents in Private International Law’. The consultation seeks views on how the legal framework governing cross-border disputes should adapt to accommodate emerging digital technologies, such as decentralised ledger systems, like blockchain, and electronic trade documents (ETDs). Responses are invited until 8 September 2025.

Context and Rationale

Private international law provides the rules for resolving cross-border legal disputes. It determines which jurisdiction’s laws apply, where claims may be brought, and how judgments are recognised and enforced. Traditionally, these rules have been predicated on the assumption that legal relationships and property can be tied to a specific geographical location. However, this assumption is increasingly challenged by digital assets—such as crypto-tokens and tokenised instruments - and by ETDs like electronic bills of lading and bills of exchange.

These technologies, particularly when deployed on decentralised ledger technology (DLT) platforms, do not rely on a centralised infrastructure or easily identifiable location. This presents significant legal uncertainties and practical difficulties, particularly in cases involving fraud, asset recovery, or the enforcement of contractual obligations. It follows that the Law Commission’s consultation marks a significant step toward updating the law to reflect the realities of modern digital commerce.

Scope of the Consultation

The Paper focuses on:

• Digital assets, including cryptoassets and tokenised financial instruments; and
• ETDs, such as electronic bills of lading and promissory notes.

These instruments are now widely used in sectors ranging from financial services to international logistics. Yet, their legal treatment remains unsettled in the context of cross-border disputes as they often involve systems that are either entirely decentralised or governed by automated smart contracts.

Key Proposals

The Consultation advances three main provisional proposals aimed at aligning legal rules with decentralised technologies, while preserving fairness and predictability:

A Free-Standing Information Order for Digital Asset Disputes

To support claimants in cases of cryptoasset related fraud, the Commission proposes a new tool, allowing parties to obtain information about wrongdoers or lost tokens without needing to first establish jurisdiction. This aims to simplify the process of early-stage claims and increases access to remedies in digital asset disputes.

A Multi-Factor Approach to Applicable Law

The Commission suggests changing how we determine which laws apply in decentralised situations. Instead of using to one governing law, the Commission proposes using a flexible approach that takes into account factors such as:

• The parties’ reasonable expectations.
• The terms of any smart contracts or protocols used.
• Considerations of the overall fairness of applying any one jurisdiction’s laws.

This approach aims to avoid arbitrary outcomes in complex cross-border digital disputes.

Reform of Section 72 of the Bills of Exchange Act 1882

This section governs applicable law in relation to contractual issues linked to bills of exchange and promissory notes. The proposed change would ensure the rules apply equally to both paper and electronic instruments, helping the law stay relevant in the digital age.

The Commission’s proposals have the potential to reduce litigation risks, strengthen enforcement processes across jurisdictions, and boost the UK's competitiveness as a hub for digital asset innovation.

Implications for Legal Practice and Industry

If implemented, these proposals would have far-reaching implications for dispute resolution, asset recovery, and commercial certainty in digital markets. They would also help to future-proof English private international law and bolster the UK’s competitiveness as a legal hub for digital assets and international trade.

For financial institutions, technology providers, logistics operators, and legal practitioners, this consultation represents an important opportunity to help shape the legal landscape for digital transactions.

How We Can Help

Charles Russell Speechlys’ Digital Assets Team is available to assist you to understand the potential impact of the proposals.