UK lawmakers introduced a bill in Parliament yesterday (Wednesday) that defines digital assets as “personal property” and categorises them as “things.” The proposed Property (Digital Assets etc) Bill would specify the category of digital holdings, including cryptocurrency, non-fungible tokens (NFTs) like digital art, and carbon credits.
Legally Defining Digital Assets
According to the official press release on Wednesday, the proposed legislation aims to advance the country’s laws on digital assets. It would define digital assets that are not currently classified under existing laws and are in a legal grey area.
The UK government further pointed out that “digital assets” is an extremely broad term, encompassing a variety of items, including digital files, records, and email accounts. However, the tabled bill will only apply to a subset of digital assets, specifically cryptotokens.
“Things”
If passed, the bill would create a new category of “things,” granting certain digital assets personal property rights. Under current UK laws, property is categorised in two ways: “things in possession,” which include assets like gold, money, and cars, and “things in action,” such as debts and shares.
“Our world-leading legal services form a vital part of our economy, helping to drive 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 enable the sector to maintain its position as a global leader in cryptoassets and bring clarity to complex property cases.”
The bill is a response to the Law Commission’s 2023 report, which was commissioned to address barriers to recognising digital assets as property. The UK government also argued that the proposed legislation would offer legal protection to owners and companies against fraud and scams and would help judges resolve complex digital asset disputes.
Meanwhile, the UK’s Financial Conduct Authority recently revealed that it rejected over 87 percent of cryptocurrency registration applications in its latest review.
This article was written by Arnab Shome at www.financemagnates.com.
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