On September 11, the UK government unveiled the “Property (Digital Assets) Bill,” establishing that digital holdings, including cryptocurrencies, non-fungible tokens (NFTs) like digital art, and carbon credits, can now be classified as personal property under legal frameworks.
“Tech-savvy owners of Bitcoin and other digital assets will gain enhanced legal protection due to a significant clarification in the law.” – according to the statement.
Crypto Recognized as Property
Until now, digital assets were not explicitly recognized within British property law, creating a “legal grey area for owners confronting interference with their assets,” the statement noted.
The announcement also indicated that the new legislation would offer protection to digital asset owners and businesses against fraud and scams.
Moreover, it will assist judges in addressing intricate cases where digital holdings are contested or involved in settlements, such as during divorce proceedings.
The UK has enacted a new bill recognizing crypto and other digital assets as personal property.
This means that owners of digital assets will receive legal safeguards against fraud and scams.
Discover more about it here ➡️ https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp
— Ministry of Justice (@MoJGovUK) September 11, 2024
UK Justice Minister Heidi Alexander stated:
“It is crucial for the law to adapt alongside advancing technologies, and this legislation will ensure that the sector remains a global leader in cryptoassets while providing clarity in complicated property cases.”
The new law was introduced following a report from the UK Ministry of Justice in 2023.
The report concluded that “certain digital assets are neither tangible possessions nor claims, yet the law of England and Wales treats them as viable subjects for personal property rights.”
The announcement also highlighted benefits for the country’s legal sector, which will be “better positioned to respond to emerging technologies, thereby attracting more business and investment within the legal services industry.”
Concerns Raised?
Many respondents in the crypto Twitter community expressed concerns that the new bill empowers the government with increased authority to tax or confiscate assets now deemed “property.”
The recently elected Labour government has already proposed extensive plans for tax increases. Whether this will extend to digital assets under their new classification remains uncertain.
Some researchers were more optimistic, suggesting that new stablecoin regulations may be established in the UK by the end of 2024.
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