New UK legislation classifies Crypto as personal property

On September 11, the UK government introduced the “Property (Digital Assets) Bill”, which means that digital holdings, including cryptocurrencies, non-fungible tokens (NFTs) such as digital art and credits of carbon, may 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 of the law.” – read the statement.

Property Crypto Now

Previously, digital assets were not definitively included in the scope of British property law, “leaving owners in a legal gray area if their assets were interfered with,” he claimed.

The announcement went on to state that the new law will also give digital asset owners and businesses legal protection against fraud and scams.

It will also help judges deal with complex cases where digital holdings are disputed or part of settlements, such as divorce cases.

The United Kingdom has passed a new bill that will allow crypto and other digital assets to be recognized as personal property.

This means that owners of digital assets will get legal protection against fraud and scams.

Read more about it here ➡️ https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp

— Ministry of Justice (@MoJGovUK) September 11, 2024

UK Justice Secretary Heidi Alexander 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 cryptoassets and bring clarity to complex property cases.”

The new law has been introduced following a report by the UK Ministry of Justice in 2023.

He concluded that “some digital assets are neither things in possession nor things in action, but that the law of England and Wales nevertheless treats them as capable of being things to which property rights can attach personal”.

The announcement also claimed that this will be an advantage for the country’s legal sector, which will be “better equipped to respond to new technologies, attracting more business and investment in the legal services industry”.

Not all good news?

Several respondents to the announcement on crypto Twitter said the new bill gives the government more powers to tax or seize what is now considered “property.”

The newly elected Labor government has already announced big plans to raise taxes across the board. Whether this applies to digital assets under their new guise remains to be seen.

Some researchers were more optimistic suggesting that new stablecoin laws will be in place in the UK by the end of 2024.

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