New bill presented to clarify the legal status of crypto assets

The Property (Digital Assets Etc.) Bill, introduced to Parliament on 11 September 2024, seeks to provide a robust legal foundation, ensuring asset holders have greater protection against fraud, theft, and disputes. Previously, digital asset owners faced uncertainty and legal vulnerabilities due to the lack of clear legal definitions. 

The Bill will empower courts to handle complex cases involving digital holdings, such as divorce settlements or instances where digital assets are involved in fraudulent schemes.

It introduces a third category of personal property under English and Welsh law, expanding the traditional categories of things in possession (tangible items like cars or gold) and things in action (assets such as debts or shares). This third category will encompass digital assets, ensuring they can attract personal property rights despite their intangible form.

The changes are based on recommendations outlined in the Law Commission's 2023 report, which examined the challenges posed by digital assets and proposed solutions for their formal legal recognition.

You can find out more and follow the progress through Parliament here: The Property (Digital Assets Etc.) Bill.

SO Legal's expertise in this evolving area of law

As one of the few law firms with significant experience in cryptocurrency and digital assets, SO Legal is already at the forefront of handling complex legal cases in this area.

In a recent case, SO Legal secured a High Court disclosure and interim freezing order for a client who had been defrauded by £135,000 in cryptocurrency. This case demonstrated the firm's proficiency in navigating complex crypto-related disputes and featured an innovative service of court documents via NFT.

Our firm's legal expertise in digital assets, combined with our strategic approach, positions us as a leading advisor for clients facing challenges in this emerging field.

The changes in the Property (Digital Assets Etc.) Bill are a welcome development in formalising legal protections for digital asset owners, an area where our solicitors have proven capability. 

Contact our solicitors

SO Legal provides expertise across a wide range of areas relating to cryptocurrency and digital assets - including intellectual property law, corporate and commercial law, litigation and dispute resolution, and estate planning.

We have solicitors in London, Brighton, Eastbourne, Hastings and Uckfield, and we work with clients nationwide.