The UK Parliament has introduced a bill to recognize Bitcoin and Crypto as personal property

The UK Parliament today introduced the Property (Digital Assets etc) Bill to formally and legally recognize Bitcoin, cryptocurrency and other digital assets as personal property. With this new legislation, for the first time, British law would formally protect digital holdings such as Bitcoin and other cryptocurrencies, non-fungible tokens (NFTs) and carbon credits.

JUST IN: 🇬🇧 UK Parliament introduces recognition bill #Bitcoin as personal property. pic.twitter.com/FzMHgmIZjx

— Bitcoin Magazine (@BitcoinMagazine) September 11, 2024

“It is essential that the law keeps pace with evolving technologies and this legislation will mean the sector can maintain its position as a global leader in cryptoassets and bring clarity to complex property cases,” said Justice Minister Heidi Alexander. “Our world-class legal services are a vital part of our economy, helping to drive economic growth and keeping the UK at the heart of the international legal industry.”

This bill aims to address a long-standing legal loophole where digital assets were previously excluded from English and Welsh property law. As a result, digital asset owners had little recourse if their holdings were interfered with, leaving them in a legal gray area.

Under the new bill, digital assets will be classified as a third category of property, allowing owners to benefit from stronger legal protections against fraud and theft. The legislation will also assist courts in resolving complex disputes, such as those arising in divorce settlements or business agreements involving digital assets.

“The bill will also ensure that the UK maintains its pole position in the emerging global crypto race by being one of the first countries to recognize these assets in law,” the announcement said.

The UK Government went on to explain that with this new legislation, their legal sector will be better equipped to respond to these new technologies and attract more business and investment into the legal services industry.

“The UK has passed a new law that will allow cryptocurrencies and other digital assets to be recognized as personal property,” the UK Ministry of Justice’s X account said. “This means owners of digital assets will gain legal protection against fraud and scams.”