UK to Recognize Cryptocurrencies as Personal Property

The United Kingdom government has introduced the first bill in British history that would recognize digital assets as personal property under the law.

According to a press release from the UK Ministry of Justice, the bill, if passed, would clarify the legal status of cryptocurrencies, including non-fungible tokens (NFTs) and tokenized real-world assets (RWAs), offering investors greater legal protection.

Crypto Bill Introduced in UK Parliament

The UK government introduced the Property (Digital Assets etc) Bill in Parliament on September 11, marking the country as one of the first to legally recognize cryptocurrencies.

Prior to the introduction of the bill, the government did not include digital assets in the scope of English and Welsh property law, leaving their owners on shaky legal ground in the event of property violations. However, the bill seeks to change the narrative.

Upon passage into law, the bill will protect digital asset owners and companies against fraud and scams. It would also enable judges to give sound rulings in complex cases like divorces that involve digital assets as part of settlements.

Justice Minister Heidi Alexander commented on the new bill:

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 crypto assets and bring clarity to complex property cases.

FCA Stands Against Crypto ATMs

The UK government’s latest move comes as the country witnesses other notable developments regarding the crypto sector. The Financial Conduct Authority (FCA) recently charged one Olumide Osunkoya for unlawfully running multiple crypto ATMs without a green light from the agency.

The FCA disclosed on September 10 that the 45-year-old Osunkoya processed £2.6 million ($3.39 million) in crypto transactions across multiple locations between December 29, 2021, and September 8, 2023, via his ATMs without required registration.

The case marks the first charges against a person indicted for running a network of crypto ATMs in the country. It is also the FCA’s first criminal prosecution linked to unregistered crypto activity.

The FCA’s joint executive director of enforcement and market oversight, Therese Chambers, said there are no legal crypto ATM operators in the UK and reiterated the agency’s warnings about the risks of investing in crypto assets.

The new bill may be the start of a new regime for cryptocurrencies in the UK.