U.K. authorities plan to clarify how to classify cryptocurrencies under a new bill.
The British Parliament has been presented with a proposal to acknowledge digital assets as personal property under English law, as per an official government notification.
The proposed bill would provide legal standing for blockchain-powered assets, such as virtual currencies, tokenized real estate, and non-fungible tokens.
According to Justice Minister Heidi Alexander, “things in possession” is a new property category that was introduced under the Act.
This legal class safeguards cryptocurrency owners from dishonest people and con artists. Minister Alexander declared in a statement on September 11 that both institutions and individual owners will be protected from dishonest business practices.
The congressman said that the plan would simplify ownership conflicts in situations like divorce.
UK advances on crypto property billÂ
One of the first measures about cryptocurrency implemented by Prime Minister Keir Starmer’s Labour government is the Property Bill.
It comes after a February consultation paper released by the Law Commission. Experts from the Law Commission suggested that digital assets, especially cryptocurrencies like Bitcoin (BTC), be covered by property law.
The idea could help former prime minister Rishi Sunak realize his goal of making the United Kingdom a center for worldwide cryptocurrency innovation.
In other places, cryptocurrency companies found it difficult to comply with FCA regulations. As per an annual report, only four out of 35 organizations met the qualifying requirements, and 90% of applicants for digital assets failed to meet the FCA’s standards.
