The UK government has introduced a bill to parliament that seeks to formally define crypto assets, including non-fungible tokens and real assets, as property.
“Previously, digital property was not clearly within the scope of property law in England and Wales, leaving owners in a legal grey area when their assets were infringed,” Heidi Alexander MP, the Minister for Justice, wrote in a press release on Wednesday.
Describing the bill as a “first in British history”, the department noted that there are currently two types of property in the UK: “possessions” (e.g. gold, money, cars) and “traits” (e.g. debts, shares). If passed, the bill would introduce a third type of property, “allowing certain digital assets to attract private property rights”.
Alexander noted in particular that the bill was drafted to maintain Britain’s “dramatic position”. “Attracting more businesses and investment in the rising global crypto race”. According to the press release, digital assets bring £34 billion a year to the UK economy.
Like many other countries, the UK has had a mixed relationship with the crypto industry. Some high-ranking officials, including former Prime Minister Rishi Sunak, have expressed a desire to turn the UK into a digital asset hub, but key regulators, such as the Financial Conduct Authority, have issued frequent warnings against investing in the asset class.
The ministry said the bill was written in response to a 2023 report from the Law Commission, which found that digital assets are neither possessions nor acts, but should nevertheless be treated as property.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, influential and timely information on the cryptocurrency industry. Current financial disclosures are as follows:
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
About the Author
Daniel Kuhn is a senior journalist and editor at The Block, covering the cryptocurrency industry with a particular focus on technology. He previously served as an associate editor at CoinDesk, where he covered the opinions/articles section. He was first published in the trade publication Financial Planning. Before pursuing journalism, he studied philosophy as an undergraduate, English literature as a graduate student, and business and economic reporting at NYU’s professional program. You can connect with him on Twitter and Telegram @danielgkuhn, or find him on Urbit as ~dorrys-lonreb.