The UK Ministry of Justice has introduced the Property (Digital Assets etc.) Bill to recognise bitcoin and other digital assets as personal property under the laws of England and Wales. Led by Justice Secretary Heidi Alexander, the bill addresses legal uncertainty surrounding digital assets, ensuring greater protection for owners in cases of fraud and disputes. It also positions the UK as a global leader in digital asset regulation, boosting the country’s economy and legal services.
UK introduces bill to legally recognize digital assets
The UK government announced on Wednesday that the Ministry of Justice has introduced the Property (Digital Assets etc.) Bill to clarify the legal status of bitcoin and other digital assets. The bill, led by Justice Secretary Heidi Alexander, aims to formally recognize digital assets, including cryptocurrencies and non-fungible tokens (NFTs), as personal property under the laws of England and Wales.
The bill addresses the legal uncertainty surrounding digital assets, which have not previously been clearly classified as property, leaving owners vulnerable to disputes or fraud. The UK government explains:
Bitcoin and other digital assets could be considered personal property under a new draft law submitted to the National Assembly today (September 11, 2024).
The new law will help judges resolve complex cases involving digital assets, such as disputes over ownership or their inclusion in divorce agreements. “The new law will therefore also provide legal protection for owners and companies against fraud and deceit, and help judges resolve complex cases involving the holding of digital assets that are disputed or part of an agreement, such as in divorce cases,” the government added.
According to the British government:
The bill would also ensure the UK maintains its lead in the emerging global cryptocurrency race by becoming one of the first countries to recognise the asset class under law.
The bill is also expected to boost the UK's global legal standing, ensuring its laws keep pace with new technologies. Alexander highlighted the wider economic benefits, stating, "Our world-class legal services are a vital part of the economy, helping to drive growth."
The bill responds to recommendations from the Law Commission 2023 report, commissioned by the Ministry of Justice, which explored ways to recognise digital assets as property under private law in England and Wales. The legal industry, which contributes £34 billion annually to the economy, would attract more international business by adopting this progressive legal framework. The move is seen as crucial to maintaining the UK’s role in global arbitration and mergers.
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