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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 10 January 2026
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Displaying 321 contributions

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Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

I will reflect on that. Whether carbon credits or anything else will be identified as property will come down to how the bill is interpreted. The bill is there to lay down the key principles of what would define digital assets as property, so the consideration of carbon credits or anything else will depend on the definition of property in a digital world.

With regard to future proofing, some witnesses—perhaps Lord Hodge or Professor Fox—made the point that, to a certain extent, we can deal only with the here and now. Technology is changing quickly, and we cannot really future proof something when the world is changing so fast and we do not know where we will be in 10 or 20 years’ time. I think that there was an acceptance that Parliament might have to deal with that once it becomes clearer, but the bill is really about dealing with the here and now.

I know that this is an open-ended debate and people will have their own views on it, but the witnesses made some good points in that regard.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

My understanding—from the expert reference group and from the evidence that was given to the committee—is that the tight definitions that you referred to were in order to differentiate between types of electronic documents, as not all electronic documents are defined as property. We have to define property, as well as other types of electronic documents.

Examples that were given to the committee, and that were given by the expert reference group, include that a digital image or an electronic document—such as an email—is not defined as property in Scots law. We therefore have to differentiate between types of electronic documents, and that is why definitions such as “immutable” or “rivalrous” come into play. They are to differentiate between what can and cannot be easily copied and what is and is not property.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

The bill’s purpose is not to solve disputes; it is to determine what digital property is. Other legislation deals with all those issues, but the bill identifies or classifies digital assets as property.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

I will bring in Fraser Gough to explain the legal background.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

As you are aware, all developments are subject to environmental assessment, and that applies to data centres as much as to any other infrastructure for AI or for the digital revolution that is taking place. As the policy evolves, we will have to have more answers to those questions, because, if the demand for energy is going to get bigger and bigger as the years go on, we are going to have to calculate what that demand will be and what impact it will have on Scotland, and we will have to look at the environmental assessments to ensure that we are working within our limits.

10:30  

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

I am going to bring in colleagues. I know that Kieran Burke was keen to come in on your previous point, so if I can bring him in to talk about the policy perspective, we will come back to your point on tokenisation.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

Yes, because the purpose of all the key principles that we are speaking about relates to our attempts to stop double selling. If you were to say that every transaction would lead to more cryptocurrency, that would suggest that there is double selling, and the legislation is designed to avoid that happening.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

We are one of many jurisdictions that is trying to modernise property law to take into account digital assets. Some other jurisdictions have passed laws in recent months—the United Kingdom law is pretty fresh—so we are not behind, but we must modernise our law. That is the purpose of the bill. The economy is changing fast and I am confident that we are moving at a reasonable pace.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

There is an ability to make regulations in the bill, so that option is open to us in the future. We cannot say in advance what the need for that will be, but the ability is there in the bill.

Economy and Fair Work Committee [Draft]

Digital Assets (Scotland) Bill: Stage 1

Meeting date: 17 December 2025

Richard Lochhead

I noted that evidence, so we will reflect on that. That is all that I can say at this point.