The United Kingdom government has introduced a bill aimed at clarifying the legal status of cryptocurrencies, non-fungible tokens (NFTs), and other digital assets. The proposed Property Bill, announced on Sept. 11, seeks to create an additional property category under UK law, recognizing digital assets as “things.”
The new legislation would address the evolving nature of digital assets, offering legal clarity to both individuals and businesses. Labour MP and Minister of State Heidi Alexander emphasized the importance of updating the law to keep pace with technology, stating that the bill would help the UK maintain its leadership in the crypto space. “This legislation will bring clarity to complex property cases and ensure protection against fraud and scams,” Alexander said.
The bill also aims to provide a legal framework for handling disputes involving digital assets, such as in divorce settlements where cryptocurrencies may be considered part of the division of assets. The legislation follows recommendations from a 2023 report commissioned by the Ministry of Justice, which highlighted the need to recognize certain digital assets as property, even though they don’t fit neatly into traditional legal categories like physical possessions or actionable rights.
This move marks the first significant action on digital asset policy by the Labour government, which came to power in July 2024. Given the current parliamentary recess and upcoming party conferences, experts suggest that further legislative action may not occur for several months.
The UK’s legislative approach mirrors the global conversation around regulating digital assets. In the United States, the 2024 election could bring significant changes to the regulatory landscape, particularly regarding the future of the US Securities and Exchange Commission’s leadership and its current approach to crypto regulation.