Breaking news! The UK plans to officially classify Bitcoin and cryptocurrency assets as "property" to generate £34 billion in revenue each year

FX168 Financial News Agency (Asia Pacific) reported that the British government has submitted a bill to Parliament seeking to formally list Bitcoin, cryptocurrency assets, non-fungible tokens (NFTs) and real-world asset tokenization (RWA) as a new form of "property". Heidi Alexander, the Minister of State at the UK Ministry of Justice, specifically pointed out that this is expected to generate 34 billion pounds of revenue each year.

Heidi said in a press release issued on Wednesday (September 11): "Previously, cryptocurrency property was not clearly included in the scope of property law in England and Wales, and if the assets were disturbed, the owner would be in a legal gray area."

The Treasury described the bill as "the first in British history" and pointed out that the country currently has two types of property: holdings, such as gold, money, and cars; and walking things, such as debts and stocks.

If passed, the bill would introduce a third type of property “to allow certain digital assets to attract personal property rights.”

Source: The Block

Heidi emphasized that the bill was drafted to keep the UK at the forefront of the emerging global cryptocurrency race and attract more businesses and investment. According to the press release, crypto assets bring in £34 billion to the UK economy each year.

Like many other countries, the UK's relationship with the cryptocurrency industry has been up and down, with some senior officials such as former Prime Minister Rishi Sunak expressing a desire to turn the island nation into a digital asset center, while major regulators such as the Financial Conduct Authority have frequently issued warnings against investing in the asset class.

The UK Financial Conduct Authority recently released its 2023-2024 annual financial report. In the report, it pointed out that more than 87% of cryptocurrency company registration applications in the UK have been rejected, withdrawn or rejected to strengthen consumer protection and combat financial crimes related to cryptocurrencies.

The authority said: We hope to communicate clearly to cryptocurrency companies that are applying for registration so that they can understand how to properly avoid promoting their own company's business in the wrong marketing methods. So far, we have also helped 44 cryptocurrency companies pass the registration and anti-money laundering regulations. ”

The authorities also emphasized that in order to ensure that cryptocurrency companies are in a clear and fair state when promoting cryptocurrencies, and exclude any content that will mislead users, so that companies comply with standards to protect users from investing in high-risk products and avoiding being deceived, they have strengthened the marketing regulations for crypto assets, including:

• Set a 24-hour buffer period: help users calmly evaluate their investment decisions before investing;
• Product suitability assessment: provide comprehensive product suitability assessment for different users;
• Provide additional maintenance for crypto assets: provide additional protection measures for crypto asset users;
• Financial crime supervision: conduct financial crime fines, credit market research, and anti-money laundering measures;
• Legal authorization: increase market integrity protection and ensure that companies obtain legal authorization.

In addition, the UK Financial Conduct Authority also stated that within three months of implementing its regulations, it warned 450 companies that illegally marketed cryptocurrency assets.

Finally, the authority added that it will continue to work to combat illegal activities such as money laundering crimes and cryptocurrency fraud, while also establishing higher cryptocurrency regulatory standards. "We continue to play an important role in the world and participate in the development of international standards in areas such as cryptocurrency, sustainable development and non-bank finance."

It is reported that the new bill seeking to classify Bitcoin and cryptocurrency assets as "property" was formulated in response to the Law Commission's 2023 report, which found that digital assets are neither possession nor action, but should still be considered property.