- If passed, the law would create a third type of property that would grant personal property rights to certain digital assets, such as non-fungible tokens.
“Previously, digital belongings were not definitively included in the scope of English and Welsh property law – leaving owners in a legal grey area if their assets were interfered with,” Heidi Alexander MP, Minister of State at the Ministry of Justice, said.
The government describes the law as a “first” in “British history,” pointing out that the country now has two types of property: “things in possession” (e.g., gold, money, automobiles) and “things in action” (e.g., debts, shares). If approved, the proposal will create a third type of property “to allow for certain digital assets to attract personal property rights.”
Alexander emphasizes that the measure was meant to preserve Britain’s “pole position in the emerging global crypto race” and encourage more firms and investments. According to the press release, digital assets bring in £34 billion a year to the UK economy.
Similar to several other countries, the United Kingdom has experienced a volatile relationship with the cryptocurrency sector. While certain influential figures, such as former Prime Minister Rishi Sunak, have expressed a desire to transform the island nation into a hub for digital assets, regulatory bodies like the Financial Conduct Authority have consistently issued advisories against investing in this asset class.
The Ministry of Justice notes that the bill was drafted in reaction to the Law Commission’s 2023 report, which concluded that digital assets should be treated as property even though they are neither things in possession nor things in action.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
