Authorities in the United Kingdom have introduced a new bill that officially recognizes digital assets, including crypto and non-fungible tokens (NFTs), as personal property under English and Welsh law. This provides long-awaited legal clarity and a clear framework for these innovative and rapidly developing assets.
Bill to Recognize Crypto as “Personal Property”
In a September 11 notice, the Ministry of Justice Publicized the introduction of his new bill explaining a few major details about it. It noted that the legislation will establish a new legal classification for digital assets, formally recognizing them as a type of property, referred to as “things”.
The bill will address the growing need for legal clarity in the crypto industry, especially in cases where ownership is disputed or digital holdings are involved in settlements, such as divorce proceedings. By providing legal protection to owners and companies, the government hopes to prevent fraud as judges will have the necessary tools to address complex cases.
The recently appointed Minister of Justice, Heidi Alexander stressed the importance of keeping pace with new technologies, stating that this legislation will help maintain the UK’s position as a global leader in crypto. The bill is seen as a significant step forward in recognizing the unique features of digital assets and providing a clear legal foundation for their use and ownership.
History of Crypto in the UK
The UK government started exploring cryptocurrencies in 2013. By 2016, the Financial Conduct Authority (FCA) was warning about risks. In 2018, a task force was formed to regulate crypto assets, marking a significant step towards formal regulation.
Since then, the UK has taken several steps to strengthen its regulatory framework. These include implementing anti-money laundering rules in 2020, banning crypto derivatives for retail consumers in 2021, introducing a bill to strengthen economic crime laws in 2022, and setting marketing rules for crypto firms in 2023.
Its no doubt that the UK has been establishing a balanced approach to crypto regulation, promoting innovation while protecting consumers and maintaining financial stability. Other countries like Nigeria, Russia, Qatar, and Ghana keep adjusting their frameworks to accommodate Digital assets with crypto being the top on their radar.
