UK Government Introduces Bill To Clarify Legal Status Of Digital Assets

According to CoinDesk, the U.K. government has introduced a bill to Parliament that addresses the legal status of digital assets, including cryptocurrencies, non-fungible tokens (NFTs), and tokenized real-world assets (RWAs). The bill aims to classify these assets as personal property under British law, providing clear guidelines for the legal profession in ownership disputes and offering protection to crypto owners against scams and fraud. The proposed legislation introduces a new category of property, in addition to the existing categories of 'things in possession' and 'things in action.' This new category, referred to as 'thing,' will allow certain digital assets to be recognized as personal property. Justice Minister Heidi Alexander emphasized that this classification will help in determining ownership during disputes, such as in divorce cases, and will safeguard individuals and companies from fraudulent activities. Earlier this year, the Law Commission, which reviews and recommends changes to laws in England and Wales, published a consultation on draft legislation to label crypto as property. This was followed by a report on its findings, which concluded that some digital assets do not fit into the existing categories of 'things in possession' or 'things in action.' However, the law of England and Wales still treats these assets as capable of being related to personal property rights. The Ministry of Justice noted that the conclusions primarily apply to a subset of digital assets, mainly crypto tokens.