The creation of a new category of legal ‘thing’ is among the measures in draft legislation introduced to parliament today. Under the Property (Digital Assets etc) Bill, digital holdings including cryptocurrency, non-fungible tokens such as digital art, and carbon credits can be considered as personal property under the law.
Previously, digital belongings were not definitively included in the scope of English and Welsh property law, leaving owners in a legal grey area if their assets were interfered with. The new measure follows the recommendations of the Law Commission’s 2023 report on digital assets, which recommended the creation of a new category of legal ‘thing’ (chose) alongside ’things in possession’ and ’things in action’.
The new law will therefore also give legal protection to owners and companies against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements, for example in divorce cases, the Ministry of Justice said.
Announcing the measure, justice minister Heidi Alexander said: ’Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry. 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.’
