On September 11, the UK government introduced the Property (Digital Assets) Bill, which means that digital assets including cryptocurrency, non-fungible tokens (NFTs) and digital art can be considered personal property under the law.

“Tech-savvy owners of Bitcoin and other digital assets will benefit from greater legal protection thanks to an important clarification of the law,” the statement said.

Crypto is now property

Previously, digital assets were not definitively included within the scope of UK property law, “leaving owners in a legal grey area if their assets were subject to interference,” it said.

In particular, it should help judges deal with complex cases where digital assets are contested or are part of a settlement, such as divorce cases.

It also clarified that the new law will provide legal protection for digital asset owners and companies against fraud and scams.

Justice Secretary Heidi Alexander said: “It is vital that the law keeps pace with developments in technology and this legislation will mean the sector can maintain its position as a world leader in crypto assets and bring clarity to complex property matters.”

The new legislation follows a report by the UK Ministry of Justice published in 2023.

It concluded that “some digital assets are neither things owned nor things in motion, but are nevertheless treated as things in England and Wales by law that can be subject to personal property rights.”

The announcement also said it would be a boon for the country’s legal sector, which would be “better prepared to respond to new technologies, attracting more business and investment into the legal services sector.”

Not all good news?

Market experts have said the new bill gives the government more powers to tax or seize what is currently considered “property.”

The newly elected Labour government has already announced ambitious plans to raise taxes across the board. Whether this will apply to "digital assets in their new guise" remains to be seen.