On November 6, the UK government issued an updated version of the Property (Digital Assets Etc.) Bill, clarifying its approach to defining digital assets, including crypto tokens, as recognized property under English law. The update aims to provide greater security and clarity for individuals and businesses engaging with digital assets.
The bill addresses the unique nature of digital assets, which do not fit within the traditional property classifications of “things in possession” or “things in action.” By allowing digital assets to be classified as property through established legal tests, the bill empowers courts to grant property rights on a case-by-case basis. This approach aligns with international standards, placing the UK among jurisdictions such as the United States and Singapore in offering a structured yet adaptable legal environment for digital assets.
A recent case involving Blockchain.com, a £5bn London-headquartered cryptocurrency firm, has underscored the need for regulatory clarity. The Telegraph reported that senior executives at Blockchain.com are currently facing prosecution for delayed account filings, highlighting the demand for transparent regulatory standards in the sector.
Founded in 2011, Blockchain.com is a leading cryptocurrency wallet provider, but recent compliance issues emphasize the importance of clear and enforceable regulatory expectations—a goal addressed by the Property (Digital Assets Etc.) Bill.
“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,” said Heidi Alexander, UK Member of Parliament
This update follows efforts by global cryptocurrency firms to scale up compliance to meet evolving standards. In 2023, Binance invested $213 million to enhance its compliance infrastructure, including AI tools and a larger compliance team. Similarly, Coinbase has secured multiple country licenses and collaborates with regulators to uphold transparent, compliant practices.
The UK reinforces its common law approach through this bill update, enabling courts to evaluate each digital asset’s unique characteristics to determine if it qualifies as property.
