The UK is moving forward with plans to clarify the legal status of cryptocurrencies through a new bill. This proposal introduces a new personal property category for certain digital assets. Once passed into law, it will help legal professionals resolve disputes, such as those related to divorce, by defining ownership. It will also offer protection to crypto holders who have fallen victim to fraud and scams.
The UK’s Latest Cryptocurrency Initiative
The UK government has introduced a bill to Parliament that addresses the legal status of digital assets, including cryptocurrencies, Non-Fungible Tokens (NFTs), and tokenized real-world assets (RWAs). The bill aims to establish that these assets will be recognized as personal property under British law. This new classification will provide guidelines for legal professionals to follow in cases of property disputes, such as divorce settlements. In addition, the bill will extend protections to crypto owners, whether individuals or companies, who have suffered from fraud or financial crimes.
At the heart of the proposal is a new category of property, which sits alongside existing categories such as “things in possession” (like money or cars) and “things in action” (such as debts or stocks). Justice Minister Heidi Alexander explained that this new category will allow certain cryptocurrencies to benefit from personal property rights under British law.
Digital Assets and Personal Property Rights
Earlier this year, the Law Commission—responsible for reviewing and recommending changes to UK law—published a consultation on draft legislation to label crypto as personal property. The commission’s findings were compiled into a report that concluded that a subset of digital assets, including crypto tokens, should fall under this category. The report stated:
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“We concluded that some digital assets are neither things in possession nor things in action, but nonetheless are treated by English and Welsh law as things to which personal property rights can apply.”
Marathon CEO: Bitcoin is the Perfect Asset Class
Marathon CEO Fred Thiel praised Bitcoin as a perfect asset class in a separate development. Thiel noted that this sentiment is shared by governments, banks, and corporations worldwide. He compared Bitcoin to traditional assets like the U.S. dollar and even the artworks of Banksy, highlighting its value as a store of wealth. Thiel emphasized that Bitcoin could be considered a form of “hard money” and expressed optimism about its future, suggesting that countries, corporations, and financial institutions will all hold Bitcoin as part of their reserves in the coming years.
Marathon CEO Fred Thiel: “#Bitcoin as an asset class is the perfect asset… And as soon the banks in the U.S. are able to custody and collateralize Bitcoin, the price of Bitcoin will explode.”pic.twitter.com/ZPQJpsG4Iu
— TFTC (@TFTC21) September 10, 2024
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