The UK government has introduced a bill to formally classify crypto assets, including non-fungible tokens (NFTs) and real-world assets, as property under English and Welsh law. Previously, digital assets were in a legal “grey area,” leaving owners with limited protection if their assets were compromised.
Heidi Alexander MP, Minister of State at the Ministry of Justice, emphasized the bill as a historic first for Britain.
Currently, UK law recognizes two types of property: “things in possession” (like money and cars) and “things in action” (like debts and shares). If passed, this law would create a third category for digital assets, granting them personal property rights.
The bill aims to strengthen the UK’s position in the global crypto landscape and attract more businesses and investments. Digital assets currently contribute £34 billion annually to the UK economy.
Britain has seen mixed signals in its crypto regulation efforts, with some officials like former Prime Minister Rishi Sunak advocating for the UK to become a digital asset hub. At the same time, regulatory bodies like the Financial Conduct Authority often issue warnings against crypto investments.
The bill was drafted following a 2023 Law Commission report recommending treating digital assets as a new form of property.
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