- A new bill has been introduced to classify cryptocurrencies and digital assets as personal property under UK law
- The legislation provides increased legal protection to owners and businesses handling digital assets
- The bill aims to strengthen the UK’s position as a global leader in crypto by clarifying legal frameworks around digital assets
A new bill has been introduced in the British Parliament that would classify digital assets, including cryptocurrencies, as personal property under English and Welsh law. This move, aimed at providing more legal protection to asset holders, is expected to clarify the legal status of digital assets such as Bitcoin and NFTs, while maintaining the UK’s position as a leader in the global digital economy.
Grey Areas Cleaned Up
The Property (Digital Assets etc.) Bill will bring significant changes to the way courts handle disputes involving digital property. Previously, digital assets existed in a legal grey area, leaving owners vulnerable in the event of fraud or interference.
Justice Minister Heidi Alexander emphasized the importance of this legislative move, stating, “It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets.”
Move Will Aid Legal System
The bill is expected to boost confidence among investors and businesses while protecting individuals in cases such as divorce settlements, where digital assets might be involved. By establishing a new category of property to encompass crypto-tokens, this legislation also responds to the Law Commission’s 2023 recommendations on digital asset reforms.
These changes will ensure the UK’s legal system remains modern and capable of handling the complexities introduced by digital technologies, further solidifying the country’s appeal to international investors and businesses in the rapidly growing tech sector.
