Home UK introduces bill that classifies crypto assets as personal property

UK introduces bill that classifies crypto assets as personal property

TLDR

  • The UK passed a bill classifying cryptocurrency and digital assets as personal property.
  • This law offers more legal protection to digital asset owners against fraud and scams.
  • The bill boosts the UK’s position in the global crypto race and benefits the tech sector.

The United Kingdom government has introduced a bill that allows cryptocurrency and other digital holdings to be considered personal property.

Before the bill was passed in Parliament on Wednesday (September 11) digital assets were not definitively included in the scope of English and Welsh property law.

This meant owners of cryptocurrency like Bitcoin would be left in a legal gray area if their assets were to be interfered with. According to YouGov, a national polling organisation within the UK, as of July 2024, 12 per cent of the nation’s adults own cryptocurrency in some form.

The new law aims to give owners increased legal protection against fraud and scams. The bill includes cryptocurrency, non-fungible tokens like digital art, and carbon credits.

The landmark move will also be of help to judges who are engaged in complex cases where digital holdings have been disputed or form part of settlement.

Justice Minister Heidi Alexander is quoted in the announcement: “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.

“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.”

UK becomes one of the first to categorize crypto assets

Regarding the law, known as ‘The Property (Digital Assets etc) Bill, the Government writes: “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 UK will be one of the first to have definitively recognized the assets, with the government touching on how this will benefit the technology sector as a whole.

“Today’s news also means the UK legal sector will be better equipped to respond to new technologies, attracting more business and investment to the legal services industry which is already worth £34 billion a year to the economy.”

The move follows recommendations from a Law Commission report released in 2023 which highlighted particular barriers to recognizing digital assets as property under English and Welsh private law.

Image featured: Photo by Linda Gerbec on Unsplash

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Sophie Atkinson
Tech Journalist

Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.