In a significant move towards crypto regulation, the UK government introduced a bill in Parliament on Wednesday. Under English and Welsh law, this bill aims to legally recognize digital assets such as Bitcoin, cryptocurrencies, and NFTs as personal property. This legislation will make the UK one of the first countries to offer definitive legal recognition and protection for these assets.
The bill proposes the creation of a third category of personal property beyond the current classifications of "things in possession" and "things in action." This new category will cover digital assets, including Bitcoin, NFTs, and digital carbon credits, giving them clear legal recognition under UK law. This will not only provide owners with stronger protection but also clarify complex legal disputes around digital asset ownership.
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Justice Minister Heidi Alexander emphasised the need for the law to adapt to new technologies, stating, “This legislation will protect the owners of cryptocurrencies and NFTs while ensuring that the UK remains a global leader in crypto regulation." She added that the bill would also bring clarity to disputes over cryptocurrency ownership and fraud.
The bill includes provisions to protect crypto owners from fraud and scams, offering clearer guidelines for courts to handle cases involving Bitcoin and NFTs. It follows recommendations from the Law Commission’s 2023 report, which identified barriers to recognising digital assets as property in English and Welsh law. The new law seeks to eliminate those barriers and provide much-needed legal clarity.
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As the UK bill on cryptocurrency and NFT protection progresses through Parliament, it is expected to garner attention from both the legal and tech industries. The legislation could reshape the future of crypto asset regulation, giving the UK a competitive edge in the global crypto landscape. By offering legal recognition to digital assets like Bitcoin and NFTs, the UK is positioning itself as a frontrunner in the evolving world of digital asset ownership.
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