- The UK introduced a bill that recognizes digital assets like Bitcoin and NFTs as personal property under English and Welsh law.
- The bill creates a new category of personal property beyond the existing classifications of "things in possession" and "things in action."
The UK government has introduced a landmark bill that aims to clarify the legal status of digital assets, including cryptocurrencies like Bitcoin and NFTs, by recognizing them as personal property under English and Welsh law.
Announced in Parliament on Wednesday, the bill proposes the creation of a new category of personal property for digital assets, expanding the existing classifications of "things in possession" and "things in action."
Justice Minister Heidi Alexander emphasized the importance of keeping the law up-to-date with technological advancements.
“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,” Alexander said.
The legislation is expected to bolster the UK’s position as a global leader in crypto assets, providing much-needed clarity in complex property cases.
The bill's introduction follows the recommendations of a 2023 Law Commission report, which highlighted barriers to recognizing digital assets as property under English and Welsh private law. Along with legal recognition for digital assets like cryptocurrencies, NFTs, and digital carbon credits, the bill aims to offer enhanced protection for asset owners against fraud and scams, while establishing clearer guidelines for judicial decisions on disputes involving digital holdings.
As the bill moves through Parliament, it is expected to garner attention from the tech and legal sectors, given its potential to shape the future of digital asset ownership and regulation in the UK.
Edited by Harshajit Sarmah
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