Globally, there has been a rapid increase in the development of, and interest in, digital assets.
‘Digital assets’ is a very general term that can be applied to a host of things including email accounts, digital files, digital records, crypto assets, non-fungible tokens (digital art) and carbon credits etc.
So it’s hugely important that on 11 September 2024, the Property (Digital Assets Etc.) Bill (The Bill) was introduced in Parliament. It meant that for the first time in British history, some digital assets could be considered personal property under the law! Previously, they were not included in the scope of England and Wales property law leaving some owners in a legal grey area if their digital assets were interfered with.
Currently there are two categories of personal property, “things in possession” (e.g. gold, money, cars) and “things in action” (e.g. debts, shares). The Bill introduces a third category of “thing” which allows certain digital assets to attract personal property rights – ergo crypto-tokens and other assets can be legally recognised.
This is groundbreaking!
The law has been updated to afford greater legal protection to Bitcoin and other digital assets. The Bill protects owners and companies against fraud and scams and should help judges deal with complex cases where digital assets are disputed or form part of settlements e.g. in divorce cases.
The result of The Bill is:
- Tech savvy owners of some digital assets will benefit from increased legal protection
- Britain maintains its position as global leader by being one of the first countries to implement law that recognises the existence of digital assets
- English and Welsh law is at the forefront of the global tech industry
Honestly, that’s not bad at all!