The UK government is preparing to define cryptocurrencies as a new type of property.

The UK government has submitted a bill to Parliament that aims to officially define crypto assets as a type of property. If accepted, this law will introduce a "third type of property" that will recognize personal property rights to digital assets.

State Minister Heidi Alexander from the Ministry of Justice stated in a press release on Wednesday that previously digital assets were not explicitly included in the English and Welsh property laws, which has left their owners in legal uncertainty.

The ministry stressed that this bill is a 'first in British history' and pointed out that there are currently two main categories of property in the UK: 'things in ownership' (such as gold, money, cars) and 'things in action' (such as debts, shares).

With the new law, it is planned to add a third category of ownership in order to grant personal property rights to digital assets.

Alexander stated that this bill was prepared to maintain the UK's "leading position in the global crypto race" and to attract more business investments. According to the press release, cryptocurrencies contribute £34 billion annually to the UK economy.

Alexander stated that the UK's approach to the crypto sector is occasionally variable, highlighting that high-level officials such as former Prime Minister Rishi Sunak have a desire to transform the country into a digital asset hub, but at the same time regulatory bodies such as the Financial Conduct Authority frequently issue warnings regarding crypto investments.

The Ministry stated that the bill was prepared based on a report published by the Legal Commission in 2023, which stated that digital assets could not be classified as either "things in ownership" or "things in action", but still needed to be considered as property.