The United Kingdom government has introduced a bill that allows cryptocurrency and other digital holdings to be considered personal property.
Before the bill was passed in Parliament on Wednesday (September 11) digital assets were not definitively included in the scope of English and Welsh property law.
This meant owners of cryptocurrency like Bitcoin would be left in a legal gray area if their assets were to be interfered with. According to YouGov, a national polling organisation within the UK, as of July 2024, 12 per cent of the nation’s adults own cryptocurrency in some form.
The new law aims to give owners increased legal protection against fraud and scams. The bill includes cryptocurrency, non-fungible tokens like digital art, and carbon credits.
The landmark move will also be of help to judges who are engaged in complex cases where digital holdings have been disputed or form part of settlement.
Justice Minister Heidi Alexander is quoted in the announcement: “Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry.
“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 and bring clarity to complex property cases.”
UK becomes one of the first to categorize crypto assets
Regarding the law, known as ‘The Property (Digital Assets etc) Bill, the Government writes: “The Bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law.”
The UK will be one of the first to have definitively recognized the assets, with the government touching on how this will benefit the technology sector as a whole.
“Today’s news also means the UK legal sector will be better equipped to respond to new technologies, attracting more business and investment to the legal services industry which is already worth £34 billion a year to the economy.”
The move follows recommendations from a Law Commission report released in 2023 which highlighted particular barriers to recognizing digital assets as property under English and Welsh private law.
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