UK Classifies Crypto and NFTs as Property

The UK’s groundbreaking Property Bill, introduced on September 11, formally classifies cryptocurrencies and NFTs as personal property, providing legal clarity

The UK government has introduced a groundbreaking Property Bill, which formally classifies cryptocurrencies and NFTs as personal property. This provides much-needed legal clarity for digital asset holders and strengthens fraud protection across the sector.

The Property Bill, published on September 11, further defines NFTs, cryptocurrencies, and carbon credits, as reported by Cointelegraph. The bill adds a new category of property to UK law, defining digital assets as "things."

"It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets and bring clarity to complex property cases," said Heidi Alexander, Labour MP and Minister of State.

Digital Asset Owners Gain Legal Protection Against Scams

The new law will "give legal protection to owners and companies against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements," according to the government. The announcement specifically mentions the use of cryptocurrency as an asset to be divided in divorce proceedings.

The legislation follows a study commissioned by the UK Ministry of Justice in 2023. "Some digital assets are neither things in possession nor things in action, but that nonetheless the law of England and Wales treats them as capable of being things to which personal property rights can relate," the paper reads.

Political Shift Brings New Crypto Regulations in UK

This law marks one of the first steps by the Labour Party government to address regulations related to digital assets and blockchain, following their victory in an election on July 4 that saw them take power from the Conservatives.

Some analysts had anticipated a slower government response on crypto legislation due to the scheduling of parliamentary recesses and party conference season.