A new bill has been introduced in Parliament which clarifies crypto’s legal status.
Tech-savvy owners of Bitcoin and other digital assets seem set to benefit from greater legal protection thanks to an important clarification to the law.
They will be considered personal property under the new draft law, introduced in Parliament yesterday.
The Property (Digital Assets etc) Bill will mean that for the first time in British history, digital holdings including cryptocurrency, non-fungible tokens such as digital art and carbon credits can be considered as personal property.
The government says 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.
Previously, digital belongings were not definitively included in the scope of English and Welsh property law – leaving owners in a legal grey area if their assets were interfered with.
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.
“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,” said Justice Minister Heidi Alexander.
“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 cryptoassets and bring clarity to complex property cases.”