The UK Ministry of Justice has introduced the Property (Digital Assets etc) Bill to recognize bitcoin and other digital assets as personal property under English and Welsh law. Led by Justice Minister Heidi Alexander, this bill addresses legal uncertainties around digital assets, ensuring better protection for owners in fraud cases and disputes. It also positions the UK as a leader in global digital asset regulation, boosting its economy and legal services.

UK Introduces Bill to Legally Recognize Digital Assets

The UK government announced on Wednesday that the Ministry of Justice has introduced the Property (Digital Assets etc) Bill to clarify the legal status of bitcoin and other digital assets. The bill, led by Justice Minister Heidi Alexander, seeks to formally recognize digital assets, including cryptocurrencies and non-fungible tokens (NFTs), as personal property under English and Welsh law.

The bill addresses the legal uncertainty surrounding digital assets, which were previously not definitively classified as property, leaving their owners vulnerable in disputes or cases of fraud. The UK government explained:

Bitcoin and other digital assets can be considered personal property under new draft law introduced in Parliament today (11 September 2024).

The new law will help judges navigate complicated cases where digital assets are involved, such as disputes over ownership or their inclusion in divorce settlements. The government added: “The new law will therefore also give legal protection to owners and companies against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements, for example in divorce cases.”

According to the British government:

The bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law.

The legislation is also expected to boost the UK’s global legal standing, ensuring its laws keep pace with new technologies. Alexander emphasized the broader economic benefits, stating, “Our world-leading legal services form a vital part of our economy, helping to drive forward growth.”

The bill is a response to recommendations from a 2023 Law Commission report, commissioned by the Ministry of Justice, which explored ways to recognize digital assets as property under English and Welsh private law. The legal sector, already contributing £34 billion annually to the economy, stands to attract more international business by adopting this progressive legal framework. This move is seen as vital to maintaining the UK’s role in global corporate arbitrations and mergers.

Source : Bitcoin.com / Sep 12, 2024