- New UK law recognizes Bitcoin and other digital assets as personal property
- The new law provides cryptocurrency owners with greater legal protections.
The UK Parliament has introduced new legislation that would clarify ownership of digital assets by recognising Bitcoin and other crypto assets as personal property.
A new draft law, the Property (Digital Assets, etc.) Bill, provides legal protection to cryptocurrency holders. The Bill was introduced into the UK Parliament on September 11, 2024.
“For the first time in UK history, digital assets, including cryptocurrencies, non-fungible tokens such as digital art and carbon credits, can be treated as personal property under the law,” the Ministry of Justice said in a press release on Wednesday.
The government also informed X of this news.
The UK has passed new legislation recognising cryptocurrencies and other digital assets as personal property.
This means that digital asset owners are legally protected from fraud and fraudulent activity.
Check out more details here ➡️ https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp
— Ministry of Justice (@MoJGovUK) September 11, 2024
Legal Protections for Bitcoin and Cryptocurrency Holders
The UK government believes that this bill will put the UK at the forefront of the emerging cryptocurrency market. According to the announcement, the goal is to protect holders of Bitcoin and other digital assets under the law.
Recognizing these assets as personal property means that individuals and companies will be protected from fraud and deception. The judicial system will also benefit by being able to handle cases arising from disputes over digital holdings, including divorce cases.
“Our world-class legal services form a vital part of our economy, helping to drive growth and keeping the UK at the heart of the international legal industry. It is essential that the law keeps pace with evolving technology, and this Bill will ensure that the sector can maintain its position as a global leader in crypto assets and provide clarity in complex property cases,” said UK Justice Minister Heidi Alexander.
British law recognizes “possessions” such as gold or money, and “acts” such as debts or shares as property, but has never classified digital assets in this way.
Since cryptocurrencies do not fall into either category, the new law envisions a third category, “things.” Cryptocurrencies will now be considered property with private property rights.