UK Introduces Bill to Give Crypto Status of Personal Property
The government of the United Kingdom has made a serious step toward renewing property laws with a bill aimed at confirming the legal status of cryptocurrencies and other blockchain-based assets. According to an official announcement, it is currently under consideration in the British Parliament – a bill classifying all digital assets as personal property under English law.
New Legal Framework for Digital Assets
The bill introduces a new form of property known as “things in possession”. According to the Justice Minister Heidi Alexander, who introduced the bill, it will provide protection for crypto holders against scams and other activities that diminish their investments. Protection will be provided to individual investors and institutions, under whose cover owners will be protected by law against scamming and bad actors.
The bill also aims to simplify ownership disputes over digital assets, making it easier to resolve cases that include divorce settlements when cryptocurrency holdings are at play.
UK Advances on Crypto Property Bill
The new bill represents one of the first major crypto-related moves by the Labour government headed by Prime Minister Keir Starmer. The development comes four months after a consultation paper from the Law Commission which recommended bringing digital assets like Bitcoin above and NFTs within the compass of property law.
This also aligns with the former Prime Minister Rishi Sunak’s ambition to make the UK at least the center point of all crypto innovations. However, the move comes at a time when crypto firms can barely meet the tough regulatory policies advanced by the Financial Conduct Authority. Recent reports indicate that 90% of all digital asset applicants have flunked standards set out by the FCA, with only four out of 35 firms receiving approval.
Implications for Crypto Owners
But the government hopes it will bring clarity and security to the fast-evolving world of cryptocurrency by formally recognizing digital assets as personal property. Including blockchain-powered holdings under English law means that investors and businesses will receive extended legal protection and smoother dispute resolution processes. As the bill makes its way further through Parliament, it remains to be seen how this legal framework will influence the wider UK cryptocurrency landscape.
