The government in the United Kingdom has introduced legislation aimed at determining the legal status of Bitcoin and other cryptocurrencies as “personal property” under local laws.
Introduction of the New Bill
In a Sept. 11 notice, the UK government announced that the Property Bill would clarify the legal status of non-fungible tokens (NFTs), cryptocurrency, and carbon credits. The legislation would create an additional category for property under UK law, identifying digital assets as “things.”
Statement by Heidi Alexander
“It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets and bring clarity to complex property cases,” said Labour MP and Minister of State Heidi Alexander.
Goals and Implications of the Law
According to the government, the proposed law will “give legal protection to owners and companies against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements.” The notice cited the example of crypto being used to divide assets in divorce cases.
The law was introduced in response to a report commissioned by the UK Ministry of Justice in 2023. The report concluded that “some digital assets are neither things in possession nor things in action, but that nonetheless the law of England and Wales treats them as capable of being things to which personal property rights can relate.” Further information will be added as it becomes available.
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