The UK Ministry of Justice today submitted to the UK Parliament a regulatory proposal that seeks to recognise cryptocurrencies, including Bitcoin, non-fungible tokens (NFTs) and tokenised carbon credits, as personal property. This legislation aims to offer legal protection to property owners and businesses against fraud and scams related to cryptocurrencies.
According to the informed According to the British government, the proposed law will also make it easier for judges to deal with “complex cases” where digital assets are in dispute or form part of agreementsas in cases of divorce.
“Our world-leading legal services form a vital part of our economy, helping to drive growth and keep Britain at the heart of the international legal industry,” said Justice Minister Heidi Alexander.
The news also means the UK legal sector will be better equipped to respond to new technologies, attracting more business and investment to the legal services industry, which is already worth £34bn a year to the economy, the UK government says.
The UK government defines digital assets as “extremely broad, encompassing a range of things such as digital files, digital records, email accounts, digital carbon credits, cryptoassets and non-fungible tokens (NFTs).”
This initiative is presented more than a year after King Carlos III gave final approval to the Financial Markets and Services Bill (FSMB), as reported by CriptoNoticias, which marked a new step in the regulation of cryptocurrencies in the country.
Furthermore, this law seeks to clarify rights over digital assets, providing a solid legal basis for the industry and for users, thus recognizing the unique characteristics of these assets that go beyond traditional payment methods.
The Law Commission of England and Wales proposes the creation of a new legal category, “data objects”, to account for these digital holdings, reflecting the government’s intention to adapt the regulatory framework to the digital age.
This article was created using artificial intelligence and edited by a human on the editorial staff.