The Property (Digital Assets etc) Bill was introduced in the UK Parliament today. This bill means, for the first time, digital assets like cryptocurrency, NFTs (non-fungible tokens), and even carbon credits can be treated as personal property under British law.
Before this, digital assets weren’t clearly defined in English and Welsh property law. If your crypto was screwed with, you had little legal protection. Now, that’s changing.
UK wants to stay ahead in crypto regulation
The new bill will reportedly give owners legal rights, protecting them from fraud and scams. It also helps courts deal with cases involving digital assets, whether in business disputes, divorces, or any other legal scenario.
The UK wants to stay at the front of the global crypto race. The country’s legal sector already brings in about £34 billion a year, and the government expects this new bill to attract even more investment and business.
Justice Minister Heidi Alexander says it’s important for the law to keep up with tech advancements. English law governs a massive £250 billion worth of global mergers and acquisitions and handles 40% of corporate arbitrations worldwide.
EU’s MiCA regulation coming soon
While the UK is moving forward, the European Union is also strengthening its regulations. The Markets in Crypto-Assets (MiCA) regulation will take full effect across the EU on December 30.
It was first published on June 9, 2023, and officially came into force on June 29, 2023. Now there’s a lot happening with this regulation, and it’s set to change how crypto operates in the EU.
This includes regulations for crypto asset service providers (CASPs), who will need authorization to operate within the EU.
CASPs will have an 18-month transition period, ending June 30, 2026, to obtain authorization under MiCA.
This transition applies to companies already operating in France, giving them time to adjust and comply with the new rules.
MiCA introduces strict rules to prevent market manipulation and abuse. MiCA identifies three main types of crypto assets: asset-referenced tokens, e-money tokens, and other crypto assets.
Firms like UCITS management companies, AIFMs, and MiFID investment firms can expand their services to include crypto under MiCA, which could open up a lot of new business opportunities.
The AML/CFT Regulation (Anti-Money Laundering/Counter-Terrorist Financing) introduces new rules about customer verification and identifying beneficial ownership.
The EU claims that the goal is to tighten controls on crypto transfers and make sure that authorities can track assets more effectively.
The regulation also amends Regulation 2015/847/EU, helping to enforce the “travel rule,” which tracks crypto asset transfers.
Another important change is the amendment to Directive (EU) 2019/1153, giving national authorities direct access to the Bank Account Registers Interconnection System (BARIS) to fight serious crimes.
The 6th AML Directive repeals earlier AMLD 4 and 5. At press time, the global crypto market has dropped by 9.6% in twenty-four hours, bringing the total market cap to $1.99 trillion.
Bitcoin’s market dominance stood at 56.02%, with its price sitting around $56,706, a 0.9% drop. Ethereum was down 0.92%, trading at $2,341.
Investors are anxiously waiting for the Federal Reserve’s big meeting that starts on September 17th. The central bank might cut rates, triggering a rally in crypto markets.
