The Property (Digital Assets etc) Bill, introduced in Parliament
today, will mean that for the first time in British history,
digital holdings including cryptocurrency, non-fungible tokens
such as digital art, and carbon credits can be considered as
personal property under the law.
The Bill will also ensure Britain maintains its pole position in
the emerging global crypto race by being one of the first
countries to recognise these assets in law.
Previously, digital belongings were not definitively included in
the scope of English and Welsh property law – leaving owners in a
legal grey area if their assets were interfered with.
The new law will therefore also give legal protection to owners
and companies against fraud and scams, while helping judges deal
with complex cases where digital holdings are disputed or form
part of settlements, for example in divorce cases.
Justice Minister said:
Our world-leading legal services form a vital part of our
economy, helping to drive forward growth and keep Britain at the
heart of the international legal industry.
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.
Today's news also means the UK legal sector will be better
equipped to respond to new technologies, attracting more business
and investment to the legal services industry which
is already worth £34 billion a year to the economy.
It is estimated that English law governs £250 billion of global
mergers and acquisitions, and 40 per cent of global corporate
arbitrations, so keeping the law up to date is vital to ensuring
that the UK remains the law of choice internationally.
Notes to editors
- Digital asset is an extremely broad term, encompassing a
variety of things such as digital files, digital records, email
accounts, digital carbon credits, cryptoassets and non-fungible
tokens (NFTs). The Law Commission's recommendations only apply to
a subset of digital assets, of which the main one is
cryptotokens.
- Currently there are two categories of property, “things in
possession” (e.g. gold, money, cars) and “things in action” (e.g.
debts, shares). This Bill introduces a third category of “thing”
to allow for certain digital assets to attract personal property
rights.
- The action being taken on digital assets is in response to
the Law Commission's report in 2023. The MOJ commissioned the
report to identify any barriers to the recognition of digital
assets as property under English and Welsh private law and to
recommend solutions.
- The Law Commission's report summary can be found here.
