A new UK bill recognises Bitcoin and other digital assets as personal property. Under the new law, cryptocurrency owners will have greater legal protection.
The UK Parliament has introduced new legislation that would clarify ownership of digital assets by recognising Bitcoin and other cryptocurrencies as personal property.
A new bill, the Property (Digital Assets etc.) Bill, which provides legal protections to cryptocurrency holders, was introduced in the UK Parliament on September 11, 2024.
“For the first time in UK history, digital assets including cryptocurrencies, non-fungible tokens such as digital art and carbon credits can be considered personal property in law,” the Ministry of Justice said in a press release issued on Wednesday.
The government also shared the news about X.
The UK has passed new legislation that will recognise cryptocurrencies and other digital assets as personal property.
This means that digital asset owners have legal protection against fraud and scams.
For more details, please see here➡️ https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp
— Ministry of Justice (@MoJGovUK) September 11, 2024
Legal protection for Bitcoin and cryptocurrency holders
The UK government believes the bill will put the UK at the forefront of the emerging cryptocurrency market. According to the announcement, the bill aims to provide legal protection for holders of Bitcoin and other digital assets.
Recognizing these assets as personal property means that individuals and businesses will be protected from fraud and deception. The judicial system will also benefit from being able to handle litigation arising from disputes over digital assets, including divorce proceedings.
“The UK's world-leading legal services form a vital part of our economy, driving growth and keeping the UK at the heart of the international legal industry. It is essential that the law keeps up with evolving technology and this legislation will enable the sector to maintain its position as a global leader in crypto assets and bring clarity to complex property litigation,” said UK Justice Minister Heidi Alexander.
UK law recognises “property” such as gold or money, and “things” such as debt and equity as property, but has never classified digital assets in this way.
Since cryptoassets do not fall into either of these two categories, the new law envisages a third category: “things”. Cryptoassets will henceforth be considered assets with personal property rights.
