- A bill which would see digital assets, such as Bitcoin and other cryptocurrencies, recognised as personal property was yesterday introduced in the UK Parliament.
- When passed into law, this bill would mark the first time in British history that digital assets have been legally recognised as property.
- Granting digital assets legal status as personal property will enhance owners’ protection from crimes such as fraud and theft and simplify the resolution of property disputes.
A draft bill recognising digital assets, such as Bitcoin and other cryptocurrencies, as personal property was yesterday introduced into the UK Parliament. Once passed into law, the Property (Digital Assets etc) Bill, will mean that many digital assets will be treated as personal property under the law for the first time in British history.
Defining digital assets as personal property is significant as it clarifies their legal status and improves protections for owners, placing them on similar legal footing as owners of more traditional assets like gold, shares and cash.
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Bill Maintains UK Position at Forefront of Crypto Law
According to a statement from the UK’s Ministry of Justice, the bill will only apply to a subset of digital assets — but that subset includes all the financially important digital assets such as NFTs, carbon credits, and of course cryptocurrencies. Other digital assets, such as computer files and email accounts are excluded from the bill.
Until now, the legal status of digital assets had not been clearly defined in the UK, leaving owners in something of a grey area and more vulnerable to fraud, theft and property disputes than owners of other assets.
This bill addresses that legal vulnerability in an interesting way — it actually creates an entirely new category of “thing” that can be legally considered property. Until now there were only two categories of personal property: “things in possession”, such as gold and cars; and “things in action”, such as debts or shares. This bill will add a third category of thing specifically covering digital assets.
Justice Minister Heidi Alexander said the bill would also help the UK economy:
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.
Heidi Alexander, UK Justice MinisterRelated: London Stock Exchange Lists Bitcoin and Ethereum ETPs, Begins Trading
This bill comes in response to the UK Law Commission’s report, published last year, which identified barriers to the legal recognition of digital assets and provided recommendations to lawmakers.
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