The UK government has introduced a new bill in Parliament that would officially classify cryptocurrencies, non-fungible tokens (NFTs), and tokenized real-world assets (RWAs) as personal property.
This landmark bill is expected to provide much-needed clarity and legal protection for digital asset owners in the UK. By recognizing crypto assets as personal property, the legislation will offer a clear legal framework for resolving ownership disputes, such as those arising during divorce proceedings. It will also strengthen protections for crypto owners, both individuals and businesses, against fraud and scams.
The bill proposes a new category of property, expanding beyond the traditional classifications of “things in possession” (like money and cars) and “things in action” (like debts and shares). This new category will specifically allow certain digital assets to be recognized as personal property, as stated by Justice Minister Heidi Alexander.
This move follows recommendations from the Law Commission, which earlier this year published a consultation and report on the legal status of cryptocurrencies. The Law Commission’s report concluded that certain digital assets, particularly crypto tokens, should be treated as property capable of holding personal property rights, despite not fitting neatly into existing legal categories.
