UK introduces bill to clarify legal status of digital assets
written by Bella PalmerThe bill addresses the legal uncertainty surrounding digital assets, which were previously not definitively classified as property, leaving their owners vulnerable in disputes or cases of fraud
The UK government announced on Wednesday that the Ministry of Justice has introduced the Property (Digital Assets etc) Bill to clarify the legal status of bitcoin and other digital assets. The bill, led by Justice Minister Heidi Alexander, seeks to formally recognise digital assets, including crypto currencies and NFTs, as personal property under English and Welsh law.
The bill addresses the legal uncertainty surrounding digital assets, which were previously not definitively classified as property, leaving their owners vulnerable in disputes or cases of fraud. The UK government explained: Bitcoin and other digital assets can be considered personal property under new draft law introduced in Parliament today (11 September 2024).
The new law will help judges navigate complicated cases where digital assets are involved, like disputes over ownership or their inclusion in divorce settlements. The government said: The new law will therefore also give legal protection to owners and firms against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements, for instance in divorce cases.
According to the British government: The bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law.
The legislation is also expected to boost the UK’s global legal standing, ensuring its laws keep pace with new technologies. Alexander emphasised the wider economic benefits, stating, “Our world-leading legal services form a vital part of our economy, helping to drive forward growth.”
The bill is a response to recommendations from a 2023 Law Commission report, commissioned by the Ministry of Justice, which explored ways to recognise digital assets as property under English and Welsh private law.
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