The UK government has submitted to the country's Parliament a bill on the legal classification of digital assets, including cryptocurrencies, non-fungible tokens (NFTs) and real-world tokenized assets (RWAs).
The aim of this legislation is to clearly define these assets as personal property under UK law.
Once adopted, it will provide a framework for legal practitioners to follow when resolving property disputes, such as in the case of divorce.
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It will also provide protection for individuals and businesses that own these assets and are victims of fraud or scams. A key aspect of the proposed law is the creation of a new category of property, alongside the existing categories of "things in possession" and "things in action."
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This new category will give certain digital assets personal property rights, Justice Minister Heidi Alexander said in a statement.