LONDON, Dec. 4 -- The government of the United Kingdom issued the following news:
* New lawconfirmsdigital assets likecrypto tokenscan berecognised aspersonal property
* Victims of digital theft and fraud gain stronger protectionsaslegislation passes through the final stages of Parliament
* Part ofGovernment'sPlan for Changefor growthtoboostthe UK's reputation as a global leaderinlegal innovation
Millions of crypto owners have gained stronger legal protection as the Property (Digital Assets etc) Act received Royal Assent this week, in a boost to the UK legal services industry.
England,Walesand Northern Ireland areamong the first countriesin the worldto confirm inlawthat digital assets -such as cryptocurrencyornon-fungibletokens- cannowbe recognised aspersonalproperty.This willprovide greater protections and ensure they are treated like traditional assets.
The new legislationensures that the legal system isequippedto tackle tomorrow's digital challenges today, cementing the UK's reputation as a world leader in the legal services industry.
Itmeans that fintech companies - from ambitious start-ups to globalenterprises-are more likely tochooseEngland,Wales,or Northern Irelandas placestodobusiness -boosting growth in a sector already worth billions to the economy.
Minister for Courts and Legal Services, Sarah Sackman KC MP, said:
This new law will keep Britain at the heart of the international legal industry.By clarifying the status of digital assets, we remove uncertainty, simplify disputes, andcement the UK's positionas the centre for fintech innovation.
This governmentdoesn'tadapttochange butleadsit. Through our Plan for Change we willcontinue toboost growth across the £42.6 billion legal services sector.
Historically, the law in this country has recognisedtwo categories of property: "things in possession" such as gold,cars,mobile phones and "things in action", which are legal rights,for example, debtsandshares. This new lawallows for the development ofafurthercategory to allow for certain digital assets tohavepersonal propertywhile recognising their uniquecharacteristics.
This meansthat as well asprovidinggreater protection againstscams,digital assets like cryptocurrency can be passed down through inheritance and recovered by creditors during bankruptcy, just like traditional assets.
Withcryptocurrency fraud rising, owners also have clearer legal rights if their assets are stolen.
The reformsalsoreduce costly disputes by giving businesses legal certainty over the status of theircrypto,bringing theminto the same framework asjewellery and othergoods.
Thenew law will attractfurtherbusiness and investment to the legal services industry which is already worth £42.6billion a year to the economywith a highly skilled workforce of 384,000.Keepingthe law up to date is vital to ensuring thatour lawremainsthe law of choicefor international businesses.
Notes to editors
* Digital asset is an extremely broad term, encompassing a variety of things such as digital files, digital records, email accounts, digital carbon credits,cryptoassetsand non-fungible tokens (NFTs). The Law Commission's recommendations only apply to a subset of digital assets, of which the main one iscryptotokens.
* The action being taken on digital assets is in response to the Law Commission's report in 2023. The MOJ commissioned the report toidentifyany barriers to the recognition of digital assets as property under English and Welsh private law and to recommend solutions.
* The Law Commission's report summary
Disclaimer: Curated by HT Syndication.
