The UK government has proposed a new bill that could soon classify digital assets as personal property.
Currently, English and Welsh law categorizes property into two groups: "things in possession" and "things in action."
The bill, introduced in Parliament on September 11, seeks to establish a third category of personal property, which would cover certain digital assets, such as Bitcoin (BTC) and non-fungible tokens (NFTs).
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In addition to providing recognition of digital assets as personal property, the bill includes provisions to enhance protection against fraud. It will also offer clearer legal guidelines for courts when dealing with complex cases involving digital assets.
Minister of Parliament Heidi Alexander emphasized the importance of keeping legal frameworks aligned with technological advancements and added:
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.
This legislative effort comes in response to a report from the Law Commission, which pointed out that digital assets don't fit into the existing two property categories under English law.
Overall, this bill has the potential to modernize property law in the UK, ensuring that digital assets are fully recognized and protected under the legal system.
