Here’s How the New UK Crypto Law Improves Legal Clarity and Benefits Kraken Traders

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Kliment Dukovski is a cryptocurrency and investments writer. He's written over 1,000 articles to help readers understand complex crypto and investment subjects, as well as to find the best...

In a pivotal moment for the crypto industry, the UK Parliament has introduced the Property (Digital Assets etc) Bill, a piece of legislation designed to clarify the legal status of digital assets like cryptocurrencies, non-fungible tokens (NFTs), and carbon credits.

This is a third category of “thing” – aside from “things in possession” (e.g. gold and money) and “things in action” (e.g. debts, shares) – that allows these digital assets to attract personal property rights.

The introduction of this bill has major implications for crypto investors in the UK. One of the most significant outcomes is the increased legal protection it provides against fraud and scams. By recognizing cryptotokens as personal property, the new law can also help judges deal with cases where such assets are disputed or form part of settlements, for example in divorce cases.

For UK traders and businesses, this is especially important in complex crypto-related cases. Whether it’s disputes over ownership, theft of cryptotokens, or complications surrounding inheritance, the bill provides a robust legal foundation to address these issues.

This will likely enhance confidence in the crypto market, as investors can now rest assured that their holdings are backed by the same legal protections as other forms of personal property. For institutional players, it offers clarity and legitimacy, making it easier to engage in the crypto markets without navigating legal grey areas.

Moreover, the new law has the potential to drive innovation, as businesses and startups find themselves