United Kingdom has passed new legislation that classifies crypto as personal property
The UK government has launched a new measure that classifies cryptocurrency assets as personal property. On September 11, the UK government introduced the “Property (Digital Assets) Bill,” which states that digital holdings, such as cryptocurrencies, non-fungible tokens (NFTs) like digital art, and carbon credits, can be considered personal property under the law. “Tech-savvy owners of Bitcoin and other digital assets will benefit from greater legal protection thanks to an important clarification to the law.” – reads the statement.
Crypto Now Property
Previously, digital assets were not explicitly included in the purview of British property law, “leaving owners in a legal grey area if their assets were interfered with,” according to the statement. The release went on to say that the new law will provide legal protection to digital asset owners and companies against fraud and scams.
It will also assist judges in dealing with complex instances in which digital holdings are challenged or included in settlements, such as divorce proceedings.
Heidi Alexander, the United Kingdom’s justice minister, said: “It is essential that the law keeps pace with evolving technologies, and this legislation will mean that the sector can maintain its position as a global leader in crypto assets and bring clarity to complex property cases.”
The committee determined that “some digital assets are neither things in possession nor things in action, but that nonetheless the law of England and Wales treats them as capable of being things to which personal property rights can relate.”
According to the release, this will benefit the country’s legal sector by making it “better equipped to respond to new technologies, attracting more business and investment to the legal services industry.”
Not All Good News?
Several crypto Twitter users responded to the announcement, claiming that the new bill provides the government more power to tax or take what is now considered “property.” The newly elected Labour government has already declared ambitious plans to increase taxes across the board. It’s unclear whether this applies to digital assets in their new incarnation. Some analysts were more optimistic, predicting that new stablecoin rules would be enacted in the UK by the end of 2024.
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