The government has said that digital holdings – including cryptocurrency, NFTs, and carbon credits – will be considered personal property under a new law.
According to The Ministry of Justice, “tech-savvy” owners of Bitcoin and other digital assets will benefit from greater legal protection under The Property (Digital Assets etc) Bill.
The move will see Britain become one of the first countries to recognise digital assets in law.
In England and Wales, digital belongings have not been definitively included in the scope within existing property law.
The government says that this has left owners in a “legal grey area” if their assets were “interfered with”.
The new rules will give crypto owners legal protection against fraud and scams, while also aiming to help judges deal with complex cases where digital holdings are disputed or form part of settlements, for example in divorce cases.
The government said that the new law will make sure Britain remains its “pole position in the emerging global crypto race”.
“Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry,” said justice minister Heidi Alexander. “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 and bring clarity to complex property cases.”
The Ministry of Justice says that the new property law means the UK legal sector will be able to better respond to new technologies, attracting more business and investment to the legal services industry which is already worth £34 billion a year.
Estimates suggest that English law governs £250 billion of global mergers and acquisitions, and 40 per cent of global corporate arbitrations.
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