UK presents bill to recognize crypto as personal property

UK authorities plan to clarify how cryptocurrencies will be classified under a new draft law.

The British Parliament has received a proposal to recognize digital assets as personal property under British law, according to an official government statement. The proposed bill would assign legal status to blockchain-backed assets, including non-fungible tokens, tokenized real-world assets, and virtual currencies.

Justice Minister Heidi Alexander explained that the law introduces a new category of property called “things in possession”.

This legal class includes protections for crypto owners against bad actors and scammers. Minister Alexander said in a statement on September 11 that both individual owners and institutions will be protected from fraudulent practices. The lawmaker added that the bill would also simplify property disputes in cases such as divorce.

UK moves ahead with crypto property law

The Property Bill marks one of the first crypto-related moves introduced by the Labour government led by Prime Minister Keir Starmer. It follows a consultation paper published by the Law Commission in February.

Law Commission experts have recommended that digital assets, particularly cryptocurrencies such as Bitcoin (BTC), be brought under property law, a concept that could advance former chancellor Rishi Sunak’s vision of transforming the UK into a global crypto innovation hub.

Elsewhere, crypto businesses have struggled to meet requirements set by the Financial Conduct Authority. An annual report found that 90% of digital asset applications failed to meet the FCA’s standards, with only four in 35 organisations qualifying.