U.K. Advances on Crypto Property Bill

U.K. authorities plan to clarify how to classify cryptocurrencies under a new bill. According to an official government notice

The United Kingdom government is preparing to define the classification of cryptocurrencies within a new bill, according to an official government notice on Monday.

The British Parliament has received a proposal to recognize digital assets as personal property under English law, as part of a broader bill that would assign legal status to blockchain-powered holdings. This includes non-fungible tokens (NFTs), tokenized real-world assets, and virtual currencies.

Justice Minister Heidi Alexander explained that the legislation introduces a new property category called “things in possession.” Enshrined in this legal class are protections for crypto owners against bad actors and scammers. Both individual owners and institutions would be shielded from fraudulent practices, Minister Alexander said in a Sept. 11 statement. The lawmaker added that the bill would also simplify ownership disputes in cases such as divorce.

The bill marks one of the first crypto-related moves enacted by the Labour government led by Prime Minister Keir Starmer. It follows a consultation paper published by the Law Commission in February.

Law Commission experts recommended including digital assets under property law, particularly cryptocurrencies like Bitcoin (BTC). The concept may advance former prime minister Rishi Sunak’s vision of transforming the U.K. into a global crypto innovation hub.

Elsewhere, crypto businesses struggled to meet requirements established by the Financial Conduct Authority (FCA). An annual report noted that 90% of digital asset applicants failed to match the FCA’s standards and only four of 35 entities qualified.