Summary:
New Bill in Parliament to recognize Bitcoin as personal property.
Increased legal protection for owners against fraud and scams.
UK aims to lead in the global crypto race.
Digital assets were previously in a legal grey area.
Legislation supports the £34 billion legal services industry.
Tech-savvy owners of Bitcoin and other digital assets will benefit from greater legal protection thanks to an important clarification to the law.
Key Highlights of the New Bill
- Bitcoin and other digital assets can be considered personal property under the new draft law introduced in Parliament today (11 September 2024).
- Owners will benefit from increased legal protection against fraud and scams.
- The changes will help maintain English and Welsh law at the forefront of the global tech industry.
The Property (Digital Assets etc) Bill, introduced in Parliament today, signifies a historic moment as it allows digital holdings, including cryptocurrency, non-fungible tokens (NFTs), and carbon credits, to be recognized as personal property under the law.
This legislation ensures that the UK maintains its lead in the global crypto race by being among the first countries to legally recognize these assets.
Previously, digital belongings were not explicitly included within the scope of English and Welsh property law, leaving owners vulnerable in legal disputes. The new law will provide legal protections for owners and companies, especially in complex cases involving digital assets.
Justice Minister Heidi Alexander emphasized the importance of this legislation:
"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."
The UK legal sector will now be better equipped to respond to new technologies, attracting more business and investment to the £34 billion legal services industry. With English law governing £250 billion of global mergers and acquisitions, keeping the law updated is crucial for maintaining the UK's international reputation.
Notes to Editors
- The term digital asset encompasses a wide range of items such as digital files, records, and cryptotokens.
- This Bill introduces a third category of property, allowing certain digital assets to attract personal property rights.
- The action taken on digital assets responds to the Law Commission’s report from 2023, aimed at recognizing digital assets under English and Welsh law.
Published 11 September 2024
Comments