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U.K. Authorities Plan to Clarify Cryptocurrency Classification

Sep 11, 2024
  1. New Cryptocurrency Bill
  2. New Category of Property
  3. Impact on Crypto Business

The U.K. authorities have proposed a classification for digital assets under English law, recognizing them as personal property.

New Cryptocurrency Bill

According to an official government notice, the British Parliament received a proposal to recognize digital assets as personal property under English law. The proposed bill would assign legal status to blockchain-powered holdings, including non-fungible tokens (NFTs), tokenized real-world assets, and virtual currencies.

New Category of Property

Justice Minister Heidi Alexander explained that the legislation introduces a new property category called “things in possession.” Enshrined in this legal class are protections for crypto owners against bad actors and scammers. According to Minister Alexander, both individual owners and institutions would be shielded from fraudulent practices. The bill would also simplify ownership disputes in cases such as divorce.

Impact on Crypto Business

The Property Bill marks one of the first crypto-related moves enacted by the Labour government led by Prime Minister Keir Starmer. It follows a consultation paper published by the Law Commission in February. Law Commission experts recommended including digital assets under property law, particularly cryptocurrencies like Bitcoin (BTC). The concept may advance former Prime Minister Rishi Sunak's vision of transforming the U.K. into a global crypto innovation hub.

Introducing a bill recognizing cryptocurrencies as personal property could significantly impact digital asset regulation and provide additional protections for their owners.

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