U.K. officials are set to provide clarity on the classification of cryptocurrencies through a new legislative proposal.
An official announcement from the government states that British Parliament has received a bill aimed at defining digital assets as personal property under English law. This proposed legislation would grant legal recognition to blockchain-based assets, such as non-fungible tokens, tokenized tangible assets, and virtual currencies.
Justice Minister Heidi Alexander noted that the proposed law creates a new category of property termed “things in possession.”
This legal category includes safeguards for cryptocurrency holders against malicious actors and fraudsters. Minister Alexander mentioned in a statement on September 11 that both individual and institutional owners would be protected from deceitful schemes. Furthermore, the law would help resolve ownership conflicts in situations like divorce.
UK progresses on cryptocurrency property legislation
The Property Bill signifies one of the initial crypto-related initiatives introduced by the Labour government under Prime Minister Keir Starmer. This move follows a consultation paper released by the Law Commission in February.
Experts from the Law Commission advocated for the inclusion of digital assets under property law, especially cryptocurrencies such as Bitcoin (BTC). This concept may align with former Prime Minister Rishi Sunak’s ambition to position the U.K. as a leading hub for crypto innovation globally.
