• UK Introduces Bill to Clarify Crypto’s Legal Status
• The Labour government said the bill will give owners of bitcoin and other digital assets greater legal protection
• It aims to provide regulatory clarity for cryptocurrencies in the UK
The Labour government said the bill will give owners of bitcoin and other digital assets greater legal protection.
Details of the Bill
The Digital Assets and Blockchain Technology Act, introduced in Parliament on Monday, aims to clarify the U.K.’s stance on cryptocurrencies and related technologies. The bill would place crypto assets within a new regulatory framework and confer legal recognition on decentralized autonomous organizations (DAOs).
It would also mandate the creation of a Cryptoasset Engagement Steering Group to recommend policy on emerging technologies like decentralized finance (DeFi) and facilitate cooperation between regulators and industry.
Additionally, the bill clarifies that decentralized protocols like Bitcoin and Ethereum do not constitute legal entities but instead exist independently as open-source software.
Industry Response
The industry welcomed the proposed legislation. Henri Arslanian, crypto leader at PwC, called it “a major step forward in providing regulatory clarity.”
Similarly, stablecoin issuer Circle said the bill could encourage more crypto companies to base themselves in the U.K.
The Association for Digital Asset Markets (ADAM) said the legislation validates efforts to construct “reliable market infrastructure and fair conduct rules.”
Conclusion
Overall, the bill signals the U.K.’s intention to foster responsible innovation in digital assets. The government said its aim is to boost competition, attract investment and protect consumers.
