UK authorities plan to clarify how to classify cryptocurrencies under a new bill.
According to an official government statement, the British Parliament received A proposal to recognise digital assets as personal property under English law. The bill would assign legal status to blockchain-based assets, including non-fungible tokens, tokenised real assets and virtual currencies.
Justice Minister Heidi Alexander explained that the legislation introduces a new category of property called “things in possession.”
Included in this kind of law are protections for cryptocurrency owners against malicious actors and fraudsters. Both individual owners and institutions would be protected from fraudulent practices, Minister Alexander said in a Sept. 11 statement. The lawmaker added that the bill would also simplify property disputes in cases such as divorce.
UK moves forward on crypto property bill
The property bill is one of the first cryptocurrency-related measures adopted by the Labour government led by Prime Minister Keir Starmer. It follows a consultation paper published by the Law Commission in February.
The Law Commission experts recommended including digital assets in property legislation, in particular cryptocurrencies such as Bitcoin (Bitcoin). The concept could boost former Prime Minister Rishi Sunak’s vision of transforming the UK into a global hub for cryptocurrency innovation.
Elsewhere, cryptocurrency firms have struggled to comply with requirements set by the Financial Conduct Authority. report It noted that 90% of digital asset applicants failed to meet FCA standards and only four out of 35 entities qualified.
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