Proactive Investors - On Wednesday, September 11, UK lawmakers introduced a bill that acknowledges crypto as being personal property. The proposed bill will recognise digital assets, including cryptocurrency, NFTs and carbon edits as part of personal property that is liable for legal protection in the UK market. This grants the same legal rights that traditional financial instruments have to crypto and other digital assets.
Well, this move gives the UK crypto market a significant boost as more investors will most likely join in. As this is happening, the value of most cryptocurrencies has been on an upward trajectory since their inception, and more people are getting involved as days go by.
A good example is Bitcoin. Since its inception in 2009, Bitcoin has remained the popular crypto around. So, you find that many investors are converting their GBP, EUR or USD to BTC as the value of the token has been steadily rising over the years. Well, even though BTC has been showing a downward trend in the last six months, you can confirm that the YTD trend in facing upwards.
Characteristics of the UK crypto market
Let’s first look at what the crypto market looks like in the UK. According to statistics developed by Datacity, the crypto economy sector in the UK has a turnover of £12.4 billion and is growing at a rate of 24% per year. Well, a December 2023 report by TripleA illustrated that 6.2% of the total UK population owned crypto. You can be sure that this number has not gone down or remained stagnant, but is on a rising trajectory.
Onto the favourite tokens. Bitcoin remains the popular choice among investors, with 62% of the respondents saying they own the asset. Following in closely is Ethereum, with 36% of investors owning it. The other popular coins are Ripple (XRP) and Tether (USDT) then the other altcoins follow.
Looking closely, the people of the UK are very optimistic about the crypto market. In fact, just to show that that’s the case, major institutions, politicians, celebrities and other public figures have joined the crypto train. Someone like GOT actor Maisie Williams is a huge supporter of crypto. Actually, 38% of the respondents in the TripleA study submitted that they wanted to increase their crypto investments in the coming years.
What does the bill mean for UK crypto investors?
According to Justice Minister Heidi Alexander, it is of uttermost importance that the country’s laws are going at the same pace with the constantly evolving technology. Alexander said that the aim of the bill was to give clarity on complex matters that surrounded property cases.
Well, the bill is set to offer protection to crypto owners and companies against fraud and scams. According to a 2023 crypto fraud report by the Internet Crime Complaint Center (IC3), the estimated number of crypto losses globally was more than $5.6 billion. This represented a 45% increase in losses compared to the previous year. With such a bill, investors might have an easier time sorting out complex fraud cases that surround their assets.
In previous years, digital assets were not included in the property law definitively, which left owners wondering what to do legally in case their assets were tampered with. However, with the new bill, digital assets will be classified complementarily with ‘things in possession such as gold and money, and ‘things in action’ which are debts, shares, etc.
But you need to note this. Defining digital assets has been a huge task for policymakers across the globe and not only in the UK. The UK government also acknowledged that the term digital assets is an extremely broad term which comprises various aspects, including NFTs, cryptocurrencies and others. Now, the Law Commission recommended that the new bill only apply to several digital assets, crypto being the main one.
A closer look
One of the biggest battles in the financial world today is the clarity of ownership of crypto. For instance, the US has a major battle between the Securities and Exchange Commission (SEC) and relevant crypto companies. A December 2023 article by Wall Street Journal showcased a looming war between the SEC and crypto agencies. In this war, the SEC chair claims that all crypto products are securities that should be regulated by the SEC.
With such clarity being outlined by the new Property Bill, the UK is on the right track to being a leader in digital finance. Actually, this bill encourages private digital asset investors to get into the UK market as there is now more clarity on ownership.
Final thoughts
The crypto world is growing exponentially and governments are becoming more involved. In the UK, the new Property Bill that has been proposed sets the country in a place where many investors would want to be. Well, this is because, investors are assured of clarity with their digital assets and they are sure that the government is behind them, backing them up and providing as much security as possible.