A significant legal update has been introduced in Parliament, which will bring greater clarity and protection for owners of Bitcoin and other digital assets. The Property (Digital Assets etc) Bill, unveiled on 11 September 2024, seeks to recognise digital holdings, including cryptocurrencies, non-fungible tokens (NFTs), and carbon credits, as personal property under English and Welsh law.
This legal recognition marks a significant shift, offering digital asset owners increased protection against fraud, theft, and scams. It will also provide clearer guidance in disputes over digital holdings, such as in divorce settlements, where these assets form part of legal cases.
Justice Minister Heidi Alexander emphasised the importance of this legislative change in ensuring that English and Welsh law remains at the forefront of technological advancements. By formally recognising digital assets as personal property, the UK strengthens its position as a global leader in the crypto and legal sectors.
This development is expected to enhance the UK’s ability to attract business and investment, particularly within its legal services industry, which contributes £34 billion annually to the economy. The update will also bolster the country’s influence in the global legal landscape, where English law governs £250 billion of mergers and acquisitions and 40% of corporate arbitrations.
This new Bill will ensure that the legal framework keeps pace with rapidly evolving technologies, offering much-needed legal clarity and protection for digital asset owners and businesses alike.
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