UK introduces new bill to classify digital assets as property
The bill proposes recognising digital assets as ‘things’ under UK law.
The UK government has introduced a new Property Bill aimed at clarifying the legal status of digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and carbon credits. The proposed legislation would create an additional property category under UK law, recognising digital assets as ‘things’ and providing a clear legal framework for handling them in cases like divorce settlements. It is seen as essential to ensure the law keeps pace with evolving technologies, according to Labour MP and Minister of State Heidi Alexander.
The bill also seeks to protect digital asset owners and businesses from fraud and scams, while giving judges clearer guidance in complex property disputes involving digital holdings. The proposal stems from a 2023 report commissioned by the Ministry of Justice, which highlighted the unique nature of digital assets and their need for distinct legal recognition under personal property law.
This legislation forms part of the Labour government’s broader efforts to address blockchain and digital asset regulation, following their recent victory in the July election. It reflects a growing trend of governments worldwide reassessing their stance on digital assets, with similar discussions taking place in the United States ahead of the 2024 election.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
