- The UK government has introduced the Property (Digital Assets etc) Bill
- The definition of ‘ownership’ will be expanded to include certain digital assets
The crypto sector has made waves in 2024, with the launch of Spot Bitcoin and Ethereum ETFs in the United States as an example. However, other jurisdictions are now taking this sector more seriously, with the UK being a good example. It’s in the news today after the British government introduced the Bill on Property (Digital Assets etc.) before Parliament.
Changing definitions
According to a statement
“…for the first time in British history, digital assets, including cryptocurrency, non-fungible tokens such as digital art and carbon credits, can be considered personal property under the law.”
Here it is worth noting that this bill was introduced within a few months of the draft of the Law Commission consultation on cryptocurrencies. In the same sense, the Commission had stated that crypto should be classified as property.
Under the aforementioned bill, the definition of “property,” which previously included “things in possession” and “things in action,” has been expanded. Instead, it will introduce a third kind of ‘thing’, including digital assets that carry personal rights.
What will be the impact?
The British government believes that this bill, if passed, will have two benefits for the country’s citizens. For a start, it will finally bring much-needed clarity to the treatment of digital assets under English and Welsh law. Likewise, the new law will also provide some legal protection to holders of these digital assets in case of fraud and scams.
According to judge Heidi Alexander,
“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 crypto assets and bring clarity to complex real estate matters.”
But that’s not all, this bill is also expected to bring more investment into the UK legal services sector. Currently the latter is a £34 billion a year business.
The timing of this bill is interesting, especially as it comes in the wake of many other countries taking a proactive step to pass crypto-friendly legislation. It is now clear that the British government wants to ensure that the country remains one of the leaders in the crypto space with this bill. Especially in light of the fact that this sector has been a hot topic for many in the US in an election year.
Only time will tell how fruitful this bill, if passed, will be for the crypto sector as a whole.
Credit : ambcrypto.com
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