Every day, there is a different step taken in the legal regulations that have been occupying the cryptocurrency market for a long time. Another one was added to these regulations that we encounter in many areas of life. In the UK, the crypto assets of British citizens who hope to access legal aid through the “Help with Fees” (HwF) program cannot be classified as disposable income.
Changes Made in the Definition of Disposable Capital
The UK Ministry of Justice, regarding the proposed aid program aimed at providing access to justice, consulted the public and shared a report accordingly. HwF aims to provide financial support for court or tribunal fees to low-income and minimum savings individuals.
The program ensures that individuals’ access to courts and tribunals is not restricted due to inability to pay the fees. The main objectives of the program are to provide low-income citizens with access to justice, provide funds to taxpayers who ultimately bear the cost of fee refunds, and ensure that the program’s accessibility and eligibility criteria are clear.
During the public consultation process conducted by the Ministry of Justice, the question regarding the proposal to change the definition of disposable capital with a list that includes crypto assets and encompasses savings and investments was asked.
Support from the Public
According to Ministry officials, citizens participating in the consultation process support this proposal, stating that it will help capture investments that are not defined as securities by the authorities. Participants who do not agree with the proposal stated that applicants’ savings and investments should not be penalized, especially including retirees and self-employed individuals:
“There was also a comment that the non-exhaustive list is very vague and there should be more clarity, such as the inclusion of cryptocurrency.”
Officials responded to this defense by stating that they will not propose a comprehensive list of capital types that will constitute savings and investments. The reason is the potential unnecessary risk posed by undeveloped capital types:
“Furthermore, we confirm that cryptocurrencies are already within the scope of the existing capital definition under the Fees Order and will continue to be within the scope of the proposed definition.”
Ministry officials stated that the list in the publicly available guide accompanying HwF applications will be reviewed to help applicants understand whether certain capital types fall within the current definition. Additionally, individuals with savings of £16,000 or more must use these resources before seeking assistance from the program.
