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The UK government has introduced a bill in Parliament, which claims that digital holdings including cryptocurrency, non-fungible tokens (NFTs) and carbon credits can be considered as “personal property.”

Before the bill was passed, digital assets such as cryptocurrencies were “not definitively included in the scope of English and Welsh property law.”

This put investors and crypto owners at risk as any interference made it difficult for them to defend their rights due to the lack of clarity in regulation. 

According to the Ministry of Justice, the new legal status on cryptocurrencies and digital assets will give “legal protection to owners and companies against fraud and scams.” Additionally, the bill will help judges deal with complex cases where crypto currencies are disputed or form part of settlements. 

The bill was passed as a response to the Law Commission’s report in 2023, which analyzed whether there were any barriers to the recognition of digital assets as property under English and Welsh private law.

Explaining why the bill was passed, Justice Minister Heidi Alexander said: 

“It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets and bring clarity to complex property cases.” 

The Ministry of Justice also states that the bill will help the UK legal sector be better equipped to navigate through the emerging tech and crypto space. 

Since the English law governs over 40% of global corporate arbitrations, the Ministry of Justice hopes the new bill would help the UK remain the “law of choice internationally.”