London, Thursday, September 12, 2024-The UK Parliament introduced the Property (Digital Assets, etc.) Bill on September 11 marked a historic move to legally recognize digital assets such as cryptocurrencies and non-fungible tokens (NFTs) as personal property under English and Welsh law.
This legislation proposes creating a new category of personal property specifically for digital assets, distinct from existing categories like “things in possession” (e.g., gold, money) and “things in action” (e.g., debts, shares).
By formally acknowledging digital assets, the bill aims to provide clearer legal protection and enhance the UK’s position in the global digital assets market.
Justice Minister Heidi Alexander highlighted the necessity of updating the law to keep pace with technological advancements.
Reports said that the bill is designed to aid judges and legal professionals in navigating disputes involving digital assets, such as ownership issues during divorce, fraud cases, and asset disagreements. It aims to offer greater protection against fraud and scams, thus fostering confidence in the UK’s legal framework.
The introduction of this bill follows a 2023 report by the Law Commission, which identified challenges in recognizing digital assets under current property laws and proposed legislative updates.
The bill is also expected to address recent regulatory challenges, including the Financial Conduct Authority’s high failure rate for crypto firm licensing.
