Summary
- The UK introduced a new bill in Parliament, classifying the legal status of digital assets.
- The bill would recognize Bitcoin, NFTs, and crypto as personal property under English and Welsh law.
On September 11, the UK government introduced a bill that would classify the legal status of digital assets including Bitcoin, NFTs, and other crypto as personal property under the English and Welsh law.
If the bill passes, it would create a third category of personal property, expanding beyond the current classifications of “things in possession,” and “things in action.”
The new category would include certain digital assets and would also offer legal recognition and protection.
Keeping Pace With Evolving Tech
As quoted in the official governmental notes, Justice Minister Haidi Alexander said that the world-leading legal services form a vital part of the economy, helping the move forward and keeping Britain at the heart of the international legal industry.
Alexander also said that it’s essential that the law keeps pace with evolving tech and such legislation would mean that the sector can maintain its position as a global leader in crypto and bring more clarity to the complex property cases.
According to the same official notes, the move made by the UK means that the legal sector in the country would be better equipped to respond to new technologies, attracting more businesses and investment opportunities to the legal services industry which brings 34 billion GBP a year already to the economy.
The English law governs 250 billion GBP of global mergers and acquisitions and 40% of global corporate arbitrations. Keeping the law updated is vital to ensuring that the UK remains the law of choice internationally.
Important Notes
The governmental notice includes notes, clarifying digital assets, and the term property.
Digital assets is a broad term that includes various elements:
- Digital files
- Digital records
- Email accounts
- Digital carbon credits
- Crypto assets
- NFTs
The Law Commission’s recommendation only applies to a subset of digital assets and the main one is crypto tokens. According to their official notes, crypto tokens are treated as things of value in themselves.
Regarding the term property, at the moment there are two categories:
- Things in possession such as gold, money, cars
- Things in action such as debts, shares
The bill would bring in a third category of “thing” to allow for certain digital assets to attract personal property rights.