Digital Assets such as bitcoin can be considered property under the Property (Digital Assets) Bill 2024 

Under the Property (Digital Assets etc) Bill, which was introduced in Parliament on the 11th of September 2024, Digital Assets such as cryptocurrency, non-fungible tokens and carbon credits can be considered as personal property.

Categories of property

‘Property’ under the law of England and Wales is divided into real property (interest in land) and personal property (interests in other things).

There were previously two categories of personal property:

1. “things in possession” and
2. “things in action”.

Things in possession generally includes assets which are tangible, moveable and visible. For example, a bar of gold.

Things in action generally includes any personal property that can only be claimed or enforced through legal action or proceedings. For example, debts or shares in a company.

Due to the advancement of technology and the introduction of digital currencies, certain assets now exist which do not easily fit within the two categories.

Property (Digital Assets etc) Bill (‘The Bill’)

The Bill provides that a thing will not be deprived of legal status as an object of personal property rights merely because it is neither a thing in action or a thing in possession.

The Bill gives rise to things which are not ‘in action’ or ‘in possession’ as attracting property rights. This essentially introduces a third category of ‘thing’.

The Bill does not characterise the third category of things which allows for the development of definitions by the common law. This enables a flexible approach allowing legislation to respond to technological advancements.

The Bill does refer expressly to things that are ‘digital or electronic in nature’ as things which could potentially be capable of attracting property rights.

Effect of the Bill

This Bill affords legal protection to owners of some categories of digital assets. This includes enforceable action in the event of fraud and theft.

The Bill is intended to improve the security of digital assets in relation to concerns about high levels of fraud within the sector.

In addition to this, the High Court have recently ruled on a complex cryptocurrency fraud case  D’Aloia v Persons Unknown and Ors [2024] EWHC 2342 (Ch) which involved an alleged cryptocurrency scam. The Court affirmed that cryptocurrencies are property under English law and are therefore capable of being traced. Although this was a civil case, the implications of this will reverberate in criminal fraud matters.

Olliers Solicitors – specialist cryptocurrency solicitors

Our specialist criminal defence solicitors can provide advice and consultancy to businesses who are concerned about ensuring they are compliant with any current or upcoming regulations around digital assets.

In addition, if your business is under investigation for its use of digital assets, we can provide you with the legal advice and representation you require.