The United Kingdom has unveiled a new bill that would further regulate the crypto ecosystem. If passed, Bitcoin (BTC) and cryptocurrency owners in general “will benefit from greater legal protection thanks to a significant clarification of the law currently in force.”
A new legislative framework to clarify the legal status of cryptocurrencies and NFTs
The UK government has presented a bill aimed at clarifying the legal status of cryptocurrencies. If this new legislative framework were to be adopted, the vast majority of tokens, including Bitcoin (BTC) and Ether (ETH), would be classified as “personal property”.
This bill focuses on the ownership of digital assets would also apply to non-fungible tokens (NFTs)also clarifying their legal status on this occasion.
👉 Discover our guide to understand everything about non-fungible tokens (NFTs)
So far, NFTs and cryptocurrencies are not included in the scope of English and Welsh property lawwhich left their owners in a legal gray area if they were to suffer harm.
So, The bill provides legal protection to owners of NFTs and cryptocurrenciesindividuals and organizations, against fraud and scams. On their side, judges will be able to handle complex cases more easily and quickly than at present.
British Justice Secretary Heidi Alexander stressed the importance of the bill, which would to develop the legislative framework of the United Kingdom in line with the democratization of cryptocurrencies in the country :
It is essential that the law keeps pace with changing technologies and
This legislation will allow the sector to maintain its position as a global leader in cryptos and bring clarity to complex real estate matters.
Buy crypto on eToro
UK continues efforts to better regulate crypto sector
This bill comes in response to a report commissioned by the UK Ministry of Justice in 2023The document highlighted the lack of legal status regarding cryptocurrencies and NFTs. A vagueness that could have left the door open to some excesses.
Indeed, the Financial Services and Markets Act, the Financial Services and Markets Billwhich has regulated the UK cryptocurrency sector since last year, failed to clarify their legal status. Thus, this new regulation would fill this “oversight”.
In the United States, depending on the results of the presidential elections scheduled for November 5, Lawmakers may well have to vote on a similar bill. Until now, the legal status of cryptocurrencies and NFTs across the Atlantic remains unclear.
🌐 In the news – US Elections: Neither Donald Trump nor Kamala Harris spoke about cryptocurrencies during their debate
Across the Channel, the situation is slightly different since the European MiCa regulation which will come into full force from December 30, aims to clarify the legal status of cryptocurrencies within the European Union.
However NFTs are excluded from the scope of the MiCa regulation. So, in France, NFT regulation and taxation remain complex notions. There is no text or case law that allows us to say whether an NFT is a digital asset, a work of art or an intangible personal property.and there is no reason to refute any of these three statuses.
Cryptoast Research: Don't Spoil This Bull Run, Surround Yourself With Experts
Source: UK Government
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
79 articles
