On Sept. 11, the UK government introduced the “Property (Digital Assets) Bill,” which means that digital holdings, including cryptocurrency, non-fungible tokens (NFTs) such as digital art, and carbon credits, can be considered personal property under the law.
“Tech-savvy owners of Bitcoin and other digital assets will benefit from greater legal protection thanks to an important clarification to the law.” – reads the statement.
Crypto Now Property
Previously, digital assets were not definitively included in the scope of British property law, “leaving owners in a legal grey area if their assets were interfered with,” it stated.
The announcement continued to state that the new law will also give legal protection to digital asset owners and companies against fraud and scams.
It will also help judges deal with complex cases where digital holdings are disputed or form part of settlements, such as in divorce cases.
The UK has passed a new bill that will allow crypto and other digital assets to be recognised as personal property.
That means owners of digital assets will gain legal protection against fraud and scams.
Read more about it here https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp
— Ministry of Justice (@MoJGovUK) September 11, 2024
UK Justice Minister Heidi Alexander said:
“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.”
The new law has been introduced following a report by the UK Ministry of Justice in 2023.
It concluded that “some digital assets are neither things in possession nor things in action, but that nonetheless the law of England and Wales treats them as capable of being things to which personal property rights can relate.”
The announcement also stated that this will be a plus for the country’s legal sector which will be “better equipped to respond to new technologies, attracting more business and investment to the legal services industry.”
Not All Good News?
Several respondents to the announcement on crypto Twitter said the new bill gives the government greater powers to tax or seize what is now considered “property.”
The recently elected Labour government has already announced grand plans to hike taxes across the board. Whether this applies to digital assets under their new guise remains to be seen.
Some researchers were more bullish suggesting that new stablecoin laws will be established in the UK by the end of 2024.