United Kingdom Introduces Bill to Clarify Crypto
11 Sep, 2024 ● Crypto News
The United Kingdom government has introduced new legislation aimed at determining if Bitcoin and other cryptocurrencies can be classified as "personal property" under UK law.
In a notice dated September 11, the UK government announced that the Property Bill would address the legal status of non-fungible tokens (NFTs), cryptocurrency, and carbon credits.
The legislation proposes creating an additional category for property in 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,” stated Labour MP and Minister of State Heidi Alexander.
The government explained that the proposed law aims to “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.”
The notice gave an example of cryptocurrency being used to divide assets in divorce cases.
This legislation comes in response to a 2023 report commissioned by the UK Ministry of Justice.
The report found that “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.”
This move is one of the first initiatives by the Labour government to address digital asset and blockchain policies since the party gained control from the Conservatives following the July 4 election.
However, some experts suggest that due to Parliamentary recesses and the party conference season, it may be several months before the government takes further action on crypto legislation.
In the United States, lawmakers could experience a similar shift in November, depending on the 2024 election results.
Control of the US Presidency, House of Representatives, and the Senate could change hands, falling under either Democratic or Republican control beginning in January 2025.
The leadership of the US Securities and Exchange Commission (SEC) under Chair Gary Gensler is a contentious issue in the US election.
Many have criticized Gensler for adopting a regulation-by-enforcement approach toward crypto firms without providing clarity on which tokens or assets might be considered securities.
Sources:
https://cointelegraph.com/news/uk-bill-cryptocurrency-legal-status
https://www.gov.uk/government/news/new-bill-introduced-in-parliament-to-clarify-cryptos-legal-status
