UK Introduces Bill to Classify Crypto Assets Like Bitcoin and NFTs as Personal Property

The United Kingdom government has introduced a bill that would create a new category of personal property for crypto and NFTs.

In a landmark move, the United Kingdom government introduced a bill in Parliament on Wednesday that aims to clarify the legal status of digital assets—including Bitcoin and other cryptocurrencies, as well as NFTs—by recognizing them as personal property under English and Welsh law.

The bill, if passed, will create a third category of personal property, expanding beyond the current classifications of “things in possession” and “things in action.” This new category will encompass certain digital assets, providing them with clear legal recognition and protection.

Justice Minister Heidi Alexander said that it was essential that the law keeps pace with evolving technologies, and that this legislation will mean that the sector can maintain its position as a global leader in crypto assets—as well as bring clarity to complex property cases.

“Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry,” she said.

The bill includes legal recognition of digital assets such as cryptocurrencies, NFTs, and digital carbon credits as personal property. It also aims to provide enhanced legal protection for owners against fraud and scams, while offering clearer guidelines for judges handling cases involving disputed digital holdings or settlements.

This legislative move follows recommendations from a Law Commission report in 2023, which identified potential barriers to recognizing digital assets as property under English and Welsh private law.

The UK government’s action positions the country as one of the first to definitively recognize these assets in law, potentially giving Britain an advantage in the emerging global crypto landscape. As the bill progresses through Parliament, it is expected to generate significant interest from both the tech and legal sectors, given its potential impact on the future of digital asset ownership and regulation in the UK.

Source: decrypt.co