The UK Parliament today introduced the Property (Digital Assets etc) Bill to officially and legally recognise Bitcoin, cryptocurrency and other digital assets as personal property. This new legislation would mean that for the first time, digital holdings such as Bitcoin and other cryptocurrencies, non-fungible tokens (NFTs) and carbon credits would be officially protected in UK law.
“It is vital that the law keeps pace with evolving technologies and this legislation means the industry can maintain its position as a global leader in crypto assets and bring clarity to complex ownership matters,” said Justice Secretary Heidi Alexander. “Our world-leading legal services are a vital part of our economy, helping to drive growth and keep Britain at the heart of the international legal sector.”
This bill aims to address a long-standing legal gap, where digital assets were previously excluded from English and Welsh property law. As a result, owners of digital assets had little recourse if their assets were tampered with, leaving them in a legal grey area.
Under the new law, digital assets will be classified as a third category of property, allowing owners to benefit from stronger legal protections against fraud and theft. The legislation will also help courts resolve complex disputes, such as those arising from divorce settlements or business agreements involving digital assets.
“The bill will also ensure that Britain maintains its leading position in the emerging global crypto race by being one of the first countries to legally recognise these assets,” the announcement.
The UK government further stated that this new legislation will better equip the legal sector to respond to these new technologies and will attract more business and investment into the legal services sector.
“The UK has passed a new law that allows cryptocurrencies and other digital assets to be recognised as personal property,” mentioned the UK Ministry of Justice X account. “This means that owners of digital assets will have legal protection against fraud and scams.”