The UK Parliament introduced a bill to legally recognize Bitcoin as personal property, offering stronger legal protections and resolving complex disputes involving digital holdings.
The UK Parliament introduced the Property (Digital Assets etc) Bill on September 11, 2024, aiming to officially recognize Bitcoin, cryptocurrency, and other digital assets as personal property. This new legislation aims to provide legal clarity and protection for digital holdings such as Bitcoin, non-fungible tokens (NFTs), and carbon credits.
UK Parliaments introduces bill establishing #Bitcoin as personal property.
— TFTC (@TFTC21) September 11, 2024
"The Bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law." pic.twitter.com/cJXaSO6SwM
Justice Minister Heidi Alexander emphasized the importance of modernizing laws to keep pace with evolving technologies, stating, "It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets." She added that the bill will help resolve complex property disputes and protect digital asset owners from fraud and theft.
Under the new bill, digital assets will be classified as a third category of property, allowing for stronger legal protection. Previously, these assets existed in a legal grey area, leaving owners vulnerable if their digital holdings were tampered with. Now, disputes involving digital assets, such as those in divorce settlements or business agreements, can be addressed with clearer legal backing.
The UK Ministry of Justice also underscored the bill’s significance for maintaining the UK's position as a leader in the Bitcoin space, further attracting investment and business into the legal services sector. The bill follows recommendations from the Law Commission's 2023 report, which identified barriers in recognizing digital assets as property.
