UK bill wants crypto and NFTs classed as personal property

A new bill introduced in the UK Parliament would classify cryptocurrency and non-fungible tokens as personal property under a new legal category. 

The drafted law, The Property (Digital Assets etc) Bill, was introduced to the UK Parliament today. It will legally classify crypto and NFTs as personal property alongside carbon credits. 

If the draft is approved, the UK says it will be “one of the first countries to recognise these assets in law.”

It claimed that the 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.”

Read more: It took UK regulator ‘25 years’ to assess all crypto applications

When a new bill is introduced to Parliament it must first be debated and approved by both the House of Lords and House of Commons. It must then receive Royal Assent before it becomes law. 

The proposed law will introduce a third category of property. The other two categories already in place are “things in possession,” such as gold, money, cars, and “things in action,” such as debts and shares. 

The UK Law Commission reportedly pushed for this legal crypto classification, arguing that digital assets can be categorized under both of the original two categories and impede court disputes.

Justice Minister Heidi Alexander said, “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.”

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