The United Kingdom (UK) government has proposed a new law to define Bitcoin, cryptocurrencies, and non-fungible tokens (NFTs) as “personal property” under local laws.
New Property Bill for Digital Assets
On September 11, the UK government announced the introduction of the Property Bill. This new law aims to clarify the legal status of digital assets such as cryptocurrencies, NFTs, and carbon credits. The bill would create a separate category for these assets under UK law, recognizing them as “things” or personal property.
Labour MP and Minister of State Heidi Alexander said, “It is important for the law to keep up with technological changes. This new law will ensure that the UK stays a global leader in crypto assets and will help clear up complex legal cases.”
Legal Protection for Crypto Holders
According to the government, the new law will provide legal protection for individuals and companies, safeguarding them against fraud and scams involving digital assets. The law will also help judges resolve complicated cases where digital assets are in dispute, such as in divorce settlements where crypto holdings may need to be divided.
The move is based on a 2023 report from the UK Ministry of Justice, which found that some digital assets don’t fit into existing categories like “things in possession” or “things in action.” However, the law in England and Wales still allows personal property rights to apply to these digital assets.
Labour Government’s First Steps in Crypto Regulation
This legislation is one of the Labour government’s first moves in regulating digital assets since the party took power after the July 4 election. However, experts believe that with upcoming Parliamentary recesses and the party conference season, the government may take several months to act on this new crypto law.
US Lawmakers May Face Similar Challenges
Meanwhile, in the United States, the 2024 election could lead to significant changes in crypto regulation. Depending on the outcome, control of the US Presidency, the House of Representatives, and the Senate could shift between Democrats and Republicans by January 2025.
One key issue in the US election is the leadership of the Securities and Exchange Commission (SEC) under Chair Gary Gensler. Many have criticised Gensler for using enforcement rather than clear regulations to manage crypto firms, leaving uncertainty about which tokens or assets are considered securities.
