A legal landmark was reached last week as the Property (Digital Assets etc) Act received Royal Assent.
The new law confirms that certain digital assets - including cryptocurrency tokens and non-fungible tokens (NFTs) - can now be formally recognised as personal property in England, Wales and Northern Ireland. In Scotland, the Digital Assets (Scotland) Bill, which will recognise digital assets as property, is currently progressing through the parliamentary process.
This new legislation puts the UK among the first jurisdictions worldwide to give digital assets the same legal standing as traditional assets. For businesses and individuals making use of Bitcoin and other digital assets, the legislation provides much-needed certainty.
By recognising digital assets as personal property, the law strengthens the protections available to owners, including:
- Clearer legal rights if certain digital assets are stolen.
- Enabling cryptocurrency to be passed down through inheritance.
- Recognition of certain digital assets during insolvency allowing them to be recovered by creditors.
The law should now give businesses greater legal certainty over the status of any cryptocurrency they hold.
For more info see: https://www.gov.uk/government/news/uk-among-first-countries-to-recognise-cryptocurrency-as-personal-property