Regulators in the UK have introduced the Property Bill in the Parliament to determine if digital holdings — including crypto assets, non-fungible tokens like digital art, and carbon credits — can be considered as personal property under local laws.
Details
- Currently there are two categories of property as per the English law, i.e. “things in possession” [gold, money, cars] and “things in action” [debts, shares]
- This Bill will add a third category of “thing” to allow certain digital assets attract personal property rights
- The latest development is in response to the Law Commission’s report from last year that chalked out barriers to the recognition of digital assets as property under laws
Why should you pay attention?
- Until now, digital assets were not definitively included in the scope of English and Welsh property laws, leaving owners in a legal grey area if their assets were interfered with
- This legislation could put Britain at the forefront of the global crypto race by aiding it become one of the first countries to give crypto a legal status
- The new law will also give legal protection to owners and companies against fraud and scams
- Alongside, it will help judges deal with complex cases where digital holdings are disputed
Who said what?
- Justice Minister Heidi Alexander underlined that the UK’s legal status will help drive forward growth and keep Britain “at the heart of the international legal industry”
- He added,
“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 crypto assets and bring clarity to complex property cases”
Zooming out
- Regulators in the UK have also notched up their registration standards for crypto firms in a bid to shield users
- Firms have been struggling to get approvals owing to insufficiencies in their fraud protection and money laundering protocols
- Over 87% of crypto registrations were withdrawn, rejected, or refused last year due to poor practices
