On September 11th, 2024, the UK government introduced the Property (Digital Assets etc) Bill in Parliament. The Ministry of Justice noted that the bill aims to "ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law."
"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," Justice Minister Heidi Alexander said in a press release.
The bill will, for the first time in British history, allow digital holdings including Bitcoin and other digital assets like crypto-tokens to attract personal property rights to be considered as personal property under the law.
Owners of digital assets will benefit from increased legal protection against fraud and scams. The new law will also assist judges in dealing with cases where digital holdings are disputed or form part of settlements, such as in divorce cases.
The new bill builds upon the Law Commission's report released in June 2023, which said that "digital assets are fundamental to modern society and the contemporary economy."
The Ministry of Justice press release declares that "Bitcoin and other digital assets can be considered personal property under new draft law introduced in Parliament today."
A 2023 EY report indicates that by 2027, institutional and high-net-worth investors are expected to allocate up to 9% of their portfolios to tokenized assets.