UK Parliament Moves to Recognize Bitcoin and Crypto as Personal Property

In a significant step toward modernizing its legal framework, the UK Parliament has introduced the Property (Digital Assets etc) Bill, aiming to officially classify Bitcoin, cryptocurrencies, and other digital assets as personal property. This legislation marks the first time British law would extend formal protection to digital holdings, including Bitcoin, non-fungible tokens (NFTs), and even carbon credits.

Justice Minister Heidi Alexander emphasized the importance of adapting the law to keep up with technological advancements: “This legislation will ensure the UK remains a global leader in the crypto sector while providing clarity in complex property cases.” She highlighted the role of the UK’s world-renowned legal services in driving economic growth and reinforcing the country’s position in the international legal landscape.

Historically, digital assets fell into a legal grey area under English and Welsh law, leaving their owners vulnerable to disputes or interference with limited legal recourse. With the introduction of this bill, that gap is set to close. The legislation would create a third category of property specifically for digital assets, providing stronger protections against fraud and theft. It also promises to simplify the handling of digital assets in complex legal matters, such as divorce settlements and business disputes.

The bill further solidifies the UK’s ambition to lead the global crypto race, being among the first nations to officially recognize digital assets in law. According to the official announcement, the move aims to not only protect owners but also to attract more business and investment to the UK’s legal services industry.

In a statement shared on social media, the UK Ministry of Justice declared: “With this new bill, owners of digital assets will finally gain the legal protections they deserve against fraud and scams.”

This move signals the UK’s ongoing efforts to stay at the forefront of the rapidly evolving digital asset landscape.