The British government has taken a significant step by introducing a new bill in Parliament to clarify the legal status of digital assets, such as Bitcoin, other cryptocurrencies, and NFTs. The legislation laid down in this proposal aims to categorize digital assets as personal property under the law of England and Wales, thus creating the tertiary category of personal property.
The existing law divides personal property into “things in possession” and “things in action.” Should the bill be passed into law, a provision would include the new form of property as digital assets, thus extending legal protection to these digital assets.
Proposed Bill to Address Legal Complexities in Digital Asset Ownership
Minister of Justice Heidi Alexander added that the passage of time and new technologies require new approaches. She opined that these measures would assist the UK in retaining its status as a crypto country and clarifying matters pertaining to property law. Alexander stressed that this market provides beneficial legal services, which should be significant for Britain’s economy and essential for developing global legal services.
Specifically, the bill seeks to legalize various forms of digital assets, such as cryptocurrencies, NFTs, and digital carbon credits. It also aims to strengthen safeguards for asset owners against fraud and scams and provide better guidance for judges specializing in cases involving digital assets.
This initiative came after the Law Commission, in a 2023 report, observed legal complexities in granting titles to digital property as property. This new bill puts the UK at the forefront of legally recognizing digital assets, which could offer it a competitive edge in the global crypto industry.
This bill has been intended to attract much attention as it moves through the Parliament, given that it affects the IT and law fields. It could affect the ownership and control of digital assets in the UK and the legal framework for digital assets in the United Kingdom.
