UK Proposes Bill to Recognize Digital Assets as Personal Property

The legislation aims to classify cryptocurrencies, NFTs, and digital carbon credits under English and Welsh law, providing them with legal protections similar to physical assets.

The Property (Digital Assets etc) Bill introduces a new category of personal property for digital assets, distinct from 'things in possession' and 'things in action'.
If passed, the bill will offer legal recognition and protections for digital assets, aiding in ownership disputes and fraud cases.
Justice Minister Heidi Alexander emphasized the need for laws to keep pace with evolving technologies, positioning the UK as a leader in crypto asset regulation.
The bill follows recommendations from a 2023 Law Commission report, which identified barriers to recognizing digital assets under current laws.
The legislative process is in its early stages and will involve multiple readings and potential amendments before it can become law.