A digital commodity is one that resides online rather than in “meatspace”. There is a vast array of items that may be categorized as digital commodities. These consist of resources like processing speed and storage. However, the phrase “digital commodity” is increasingly used to refer to digital currencies.
Practically speaking, cryptocurrencies are the main focus of regulation of digital commodities. The Digital Commodity Exchange Act 2020 was ratified by lawmakers in the US to control the operations of trading platforms. Recent years have seen a fast emergence of new rules and regulations controlling the usage of cryptocurrencies and related activities, from the BitLicense issued by the state of New York to the United Kingdom’s restriction on the selling of cryptocurrency derivatives to individual investors.