Scottish Government moves to provide ‘legal clarity’ over cryptocurrencies

Digital assets like Bitcoin and other digital currencies could be classed as objects of property if a new bill introduced to provide “legal clarity” is passed. 

The bill has been introduced in an effort to regulate the often-murky world of cryptocurrency, where the legal status of assets can be uncertain. 

Cryptocurrencies like Bitcoin are an alternative to traditional electronic currency, that exist without the oversight of a central bank or government. They are an alternative way of transferring value and operate on a peer-to-peer basis, where users can send and receive currency without using traditional financial services like a bank.  

This system is attractive to users as it gives them a higher level of control over their assets but increases the risk of losing them, as no institution or government is responsible for oversight and risk management.  

The Scottish Government hope that the bill will give businesses the confidence to invest in these digital assets like Bitcoin, a potentially crucial part of Scotland's future digital economy. 

“This legislation provides the legal clarity that businesses and investors need to thrive in Scotland's digital economy,” said business minister Richard Lochhead. “By clarifying how digital assets are treated under Scots property law, we are building strong foundations for innovation and ensuring that Scots law can accommodate these innovations.” 

The new legislation is designed to create a firm legal foundation, where digital assets can be classed as objects of property under Scots private law. This means that assets such as intellectual property rights or contracts are held in the same legal status as property or land.  

By creating this legislation, the Scottish Government is hoping to attract investors into Scotland's digital economy, instead if into other countries that currently offer greater legal certainty around asset ownership.  

“Scotland's world-class legal system and vibrant financial sector are experiencing huge growth,” said Lochhead. “We want to be a FinTech global powerhouse and legislation such as this will help meet that commitment.”   

Scotland currently has around 260 financial technology, or FinTech companies, that contribute £14bn to the Scottish economy. The sector employs over 11,300 people and grew by eight per cent in the last year alone.  

The global FinTech market was valued at $340bn in 2024, with the sector predicted to grow to a valuation of 1,583bn by 2033.