- The United Kingdom’s new bill recognises Bitcoin and other digital assets as personal property.
- Under the new law, cryptocurrency owners will receive stronger legal protection.
The UK Parliament has introduced a new bill that clarifies the legal status of digital assets by recognising Bitcoin and other crypto assets as personal property.
The draft legislation, titled the Property Bill (Digital Assets, etc.), is designed to provide legal protection to holders of cryptocurrencies. It was presented to Parliament on 11 September 2024.
“For the first time in UK legal history, digital holdings, including cryptocurrencies, non-fungible tokens such as digital art, and carbon credits, can be treated as personal property under the law,” the Ministry of Justice said in a press release published on Wednesday. The government also shared the announcement on X.
The UK has passed a new bill that will allow crypto and other digital assets to be recognised as personal property.
That means owners of digital assets will gain legal protection against fraud and scams.
Read more about it here ➡️ https://t.co/IQwPvWJXUk pic.twitter.com/LxhHUws4Qp
— Ministry of Justice (@MoJGovUK) September 11, 2024
Legal protection for Bitcoin and cryptocurrency holders
The UK government says the bill positions the country at the forefront of the emerging cryptocurrency market. The stated aim is to protect holders of Bitcoin and other digital assets through clear legal recognition.
By treating these assets as personal property, individuals and businesses will gain protections against fraud and scams. The court system will also be better equipped to resolve disputes involving digital holdings, including questions that arise during divorce proceedings or commercial disputes.
“Our world-leading legal services are a vital part of our economy, helping to drive 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 help the sector maintain its global leadership in crypto assets and bring clarity to complex property cases,” said UK Secretary of State for Justice, Heidi Alexander.
Historically, UK law has distinguished between “things in possession,” like gold and cash, and “things in action,” such as debts or shares, but it has not offered a clear category for digital assets.
Because cryptocurrencies did not fit neatly into either existing category, the new bill introduces a third category of “thing.” Under this framework, cryptocurrencies and similar digital assets will be recognised as property that can attract rights of personal ownership and legal protection.
The change aims to make it easier for courts and regulators to handle disputes over digital holdings, strengthen remedies for victims of fraud, and provide greater certainty for individuals, businesses, and the legal profession as digital assets become more widely used.