- UK introduces bill to classify digital assets as personal property under English and Welsh law.
- New legislation to enhance legal protection and clarity for digital assets like Bitcoin and NFTs.
- Bill aims to position the UK as a global leader in digital asset regulation and ownership rights.
The United Kingdom has taken a significant step towards legal clarity in the crypto market by introducing a bill that aims to classify digital assets like Bitcoin, NFTs, and other cryptocurrencies as personal property under English and Welsh law.
This legislative amendment, tabled in Parliament on Wednesday, aims to establish a new category of personal property, address the changing face of digital assets, and offer legal cover.
The proposed bill also seeks to introduce a new kind of property, a third kind of property, to be more precise. This will be in addition to the current ‘things in possession’ and ‘things in action’. The proposed new kind of property will be digital assets to enhance their legal status.
The bill, if approved, will set the legal foundation of digital currencies, NFTs, and other similar digital assets, and enable their owners to have better protection against fraud and scams.
Minister of Justice Heidi Alexander underlined that the existing legislation has to be brought in line with the changes that have taken place in the world.
She said, “It is important that our legal system is capable of adapting to the new technologies and this legislation will ensure that the UK maintains its position at the forefront of the crypto assets market as well as providing guidance in cases concerning property. ”
The bill seeks to legalize the use of digital assets such as cryptocurrencies as well as Non-Fungible Tokens (NFTs), and even carbon credits in the digital form as property.
This is expected to provide a clear direction for the judges, especially those handling cases that involve the disputed digital assets or the settlements made with them in a bid to minimize the chances of confusion during the trial.
The bill’s provisions aim to strengthen the legal recourse for digital asset owners, especially in cases of fraud or scam, which has become rife in the digital world.
The introduction of this bill follows recommendations from a 2023 Law Commission report, which identified challenges in recognizing digital assets as property under existing English and Welsh private law.
By addressing these challenges, the UK government aims to solidify its position as a global leader in the crypto sector.
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