U.K. authorities are set to clarify the classification of cryptocurrencies under a new bill.

According to an official government notice, the British Parliament received a proposal to recognize digital assets as personal property under English law. This proposed bill would assign legal status to blockchain-powered holdings, including non-fungible tokens (NFTs), tokenized real-world assets, and virtual currencies.

Justice Minister Heidi Alexander explained that the legislation introduces a new property category called “things in possession.” This legal classification aims to offer protections for crypto owners against fraud and scams. Both individual owners and institutions would be shielded from fraudulent practices. Minister Alexander noted in a statement on September 11 that the bill would also simplify ownership disputes in cases such as divorce.

The Property Bill represents one of the first crypto-related moves enacted by the Labour government led by Prime Minister Keir Starmer. This follows a consultation paper published by the Law Commission in February. Law Commission experts recommended the inclusion of digital assets under property law, particularly cryptocurrencies like Bitcoin. This aligns with the former prime minister’s vision of transforming the U.K. into a global crypto innovation hub.

Meanwhile, crypto businesses have struggled to meet the stringent requirements established by the Financial Conduct Authority (FCA). An annual report noted that 90% of digital asset applicants failed to meet the FCA’s standards, with only four out of 35 entities qualifying.

For more updates on cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

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