Key Insights
- UK government introduces bill to legally define crypto assets as property
- Proposed legislation would create a third category of property for digital assets
- The bill aims to maintain UK’s competitive edge in the global crypto market
LONDON (MarketsXplora) – The British government introduced a groundbreaking bill to Parliament on Wednesday, aiming to formally classify crypto assets, including non-fungible tokens (NFTs) and tokenized real-world assets, as property under English and Welsh law.
The proposed legislation, described by the Ministry of Justice as a “first” in British history, seeks to establish a third category of property, addressing the current legal ambiguity surrounding digital assets.
“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,” said Heidi Alexander, Minister of State at the Ministry of Justice, in a statement.
The bill comes in response to a 2023 Law Commission report, which concluded that digital assets, while neither “things in possession” nor “things in action” – the two existing categories of property – should nonetheless be treated as property.
If passed, the law would introduce a new classification to grant certain digital assets personal property rights, potentially bolstering the UK’s position in the global crypto market. The Ministry of Justice estimates that digital assets contribute £34 billion annually to the UK economy.
The move underscores Britain’s complex relationship with the cryptocurrency industry. While some officials, including former Prime Minister Rishi Sunak, have advocated for transforming the UK into a digital asset hub, regulatory bodies like the Financial Conduct Authority have frequently cautioned against investing in crypto assets.
Alexander emphasized that the bill aims to maintain Britain’s “pole position in the emerging global crypto race” and attract more businesses and investments to the country.
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