The UK government has recently introduced a bill to Parliament intending to establish a clear legal framework for digital assets, including cryptocurrencies, non-fungible tokens (NFTs), and tokenized real-world assets (RWAs).
The proposed legislation aims to establish a new category of personal property under British law, recognizing digital assets as “things” that can be owned and protected.
The Property (Digital Assets etc) Bill, introduced in Parliament today, marks a historic move. For the first time in British history, digital holdings such as cryptocurrency, non-fungible tokens (NFTs) like digital art, and carbon credits will be considered personal property under the law.
A key objective of the bill is to provide legal protection for individuals who own cryptocurrencies like Bitcoin. This would enable the legal sector to resolve ownership disputes that may arise, for example, during divorce proceedings.
Moreover, the bill seeks to offer safeguards for both individuals and businesses that may fall victim to crypto-related fraud or scams.
This initiative builds on a consultation document released earlier this year by the Law Commission, which suggested defining cryptocurrencies as property.
The Ministry of Justice has clarified that the conclusions from this consultation primarily concern a specific group of digital assets, mainly crypto tokens.
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UK Justice Minister Heidi Alexander emphasized that the country’s top-quality legal services are crucial for its economy, contributing to growth and maintaining Britain’s prominence in the global 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,” she said.
If the bill is passed, it would provide much-needed clarity and legal protections for the growing crypto industry in the UK, benefiting participants and fostering a more secure environment for digital asset transactions.
