The UK government has introduced a bill concerning Bitcoin.
This aims to determine whether Bitcoin (BTC) and other cryptocurrencies can be classified as “personal property” under national legislation.
In a recent notice, the UK government announced that the Property Bill would clarify the legal status of non-fungible tokens (NFTs), cryptocurrencies and carbon credits.
Indeed, the legislation would create an additional category. This concerns property in UK law, identifying digital assets as “things.”
“It is essential that the law keeps pace with technological developments, and this legislation will enable the sector to maintain its position as a world leader in crypto-assets and bring clarity to complex ownership cases,” mentions Heidi Alexander, Labour MP and Minister of State.
Why this Bill?
According to the government, the proposed legislation “will give legal protection to owners and businesses against fraud and scams. This is by helping judges deal with complex cases where digital assets are contested or form part of settlements.”
The opinion cited the example of using cryptos to divide assets in divorce cases.
The law was introduced in response to a report commissioned by the UK Ministry of Justice in 2023.
The report concluded that certain digital assets are neither things in possession nor things in action.
Nevertheless, English and Welsh law treats them as capable of being things to which personal property rights may attach.
The legislation was one of the first steps taken by the Labour government to deal with policies on digital assets and blockchain.
Incidentally, some experts doubt that any swift action will be taken on crypto legislation due to the upcoming parliamentary recess and party conferences.
Lawmakers Could Face a Similar Situation in the U.S.
Some changes could take place following the upcoming US elections in November.
Control of the American presidency, the House of Representatives and the Senate could also shift. This could be in the hands of the Democrats or Republicans from January 2025.
The leadership of the US Securities and Exchange Commission under Chairman Gary Gensler is at stake in the US elections.
Many have criticized the SEC chairman for taking a regulatory-by-enforcement approach towards crypto companies, without clarifying which tokens or assets might constitute securities.
