Digital Assets (Scotland) Bill: final business and regulatory impact assessment

Issue and why it needs to be addressed

Intended outcomes

Options

Option 1: Do nothing. To do nothing would mean waiting for matters of property law to be determined by the Scottish courts. Given the relatively small size of the jurisdiction, it is not possible to predict if or when a suitable case or cases may come before the Scottish courts.

Until such time as case law is developed, there would continue to be a lack of legal certainty.

Option 2: Introduce primary legislation. The Bill is an expedient way to provide legal certainty through foundational legislation that will help facilitate Scots private law to accommodate modern business practices.

Sectors affected

Businesses, including those investing in digital assets, for technology and financial start-ups, as well as for the legal sector. No areas of particular significance have been identified for local government or the third sector.

Engagement completed, ongoing and planned

The Expert Reference Group (ERG) reviewing Digital Assets in Scots private law brought together experts from academia, fintech and technical bodies, to consider how Scots private law should accommodate digital assets. Its remit included examining the status and treatment of digital assets considering wider UK initiatives with relevance to Scotland’s FinTech sector and advising whether legislative change was required. Between 2019 and 2024, the ERG met 6 times and reported its recommendations to the Scottish Government on 11 November 2023.

The Scottish Government launched a public consultation on Digital Assets in Scots Private Law, which ran from 27 November 2024 to 5 February 2025. The consultation sought views on proposed reforms to clarify the status of digital assets as objects of property under Scots law, drawing directly on the recommendations of the ERG.

A total of 21 written responses were received, consisting of individual respondents and representative organisations, primarily from the legal, financial services, and fintech sectors. Stakeholders overwhelmingly agreed that primary legislation is the most effective way to resolve uncertainty in this area.

Anticipated impacts (intended and unintended, positive and negative) and mitigating actions

The Bill is expected to deliver benefits through providing legal clarity on the status, ownership and transfer of digital assets within Scots private law. There is, however, a risk that overly prescriptive definitions could create legal complexity or lead to divergence between Scots law and other jurisdictions. To address this, the Bill will use technology-neutral drafting, helping to ensure that the framework remains adaptable and fit for purpose as new digital technologies continue to emerge.

Enforcement/ compliance

The Bill will provide a foundational statutory framework within which digital assets are recognised as property under Scots private law. Compliance will rest directly with individuals and businesses who transact with such assets. Enforcement will be delivered through the courts, which will apply the legislation when resolving disputes.

Recommendations/ implementation plans

The Bill will provide legal clarity on the status of digital assets in Scots private law and will be drafted in a technology-neutral way to enable flexibility and adaptability to future innovations in digital markets. It will also seek alignment, where appropriate, with developments elsewhere in the UK and internationally, to help promote the accessibility of Scots law internationally.