UK introduces crypto bill to clarify legal status for ‘first time in British history’

• British government introduced the Property (Digital Assets etc) Bill
• Definition of “property” will be expanded to include certain digital assets

The crypto-sector has been making waves in 2024, with the launch of Spot Bitcoin and Ethereum ETFs in the United States being a case in point. However, other jurisdictions are now taking this sector more seriously too, with the U.K being a prime example. It is in the news today after the British government introduced the Property (Digital Assets etc) Bill before the parliament.

Changing definitions

According to a statement,

“… 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 under the law.”

Here, it’s worth noting that this bill has been introduced within months of the Law Commission’s draft consultation on cryptocurrencies. In the same, the Commission had stated that crypto should be labelled as property.

Under the aforementioned bill, the definition of “property,” which previously included “things in possession” and “things in action,” has been expanded. Instead, it will introduce a 3rd type of “thing,” which would include digital assets that carry personal rights.

What will be the impact?

The British government believes that this bill, if passed, will have two-fold benefits for the citizenry of the country. For starters, it will finally allow for some much-needed clarity in the treatment of digital assets under English and Welsh law. Similarly, the new law will also give some legal protection to holders of these digital assets in cases of frauds and scams.

According to Justice 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 crypto-assets and bring clarity to complex property cases.”

That’s not all though, with this bill also expected to bring in more investment into the UK’s legal services sector. Right now, the latter is a £34 billion a year business.

The timing of this bills is interesting, especially since it comes on the heels of many other countries taking a pro-active step to pass crypto-friendly legislation. It’s clear now that with this bill, the British government wants to make sure the country remains one of the frontrunners in the crypto-space. Especially in light of the fact that this sector has been a hot-button issue for many in the U.S in an election year.

Only time will tell how fruitful this bill, if it is passed, will be for the crypto-sector as a whole.