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

Section 3: Costs, impacts and benefits

Quantified costs to businesses

The wider financial implications of the Bill have been considered through the development of the Financial Memorandum. It has been determined that cost implications to implement the Bill for businesses is expected to be negligible.

The purpose of the Bill is to clarify Scots private law, and it will do so without the establishment of new or additional regulatory requirements. The Bill is anticipated to be beneficial to Scotland’s economy; however, it is not possible to quantify potential benefits.

No significant cost implications are anticipated to result from the commencement of the Bill for businesses. The Financial Memorandum highlights in greater detail some of the potential costs to business through the form of Continuing Professional Development (“CPD”) however these costs are expected to be relatively negligible. Illustrative figures are also provided in the form of cost avoidance for potential related cases that would enter the Scottish Courts and Tribunal system, but these are purely illustrative given the lack of civil case law currently in Scotland.

Other impacts

Scottish firms’ international competitiveness

Primary legislation confirming that digital assets can be objects of property will help provide greater confidence to Scottish businesses, particularly in the FinTech sector, to develop innovative products and services. Lack of legal clarity may result in businesses choosing to govern their assets in another jurisdiction, where digital asset legislation is already established. Primary legislation will ensure Scotland’s business environment remains competitive and well-positioned to take advantage of global opportunities in the digital economy.

The Bill can help strengthen the attractiveness of Scotland as a destination for global capital investment. Investors are more likely to commit resources in jurisdictions where the legal framework is predictable and accommodates modern business practices. This may make Scotland a more compelling location for investment in both traditional and decentralised finance-based businesses.

Benefits to business

The primary benefits of primary legislation are likely to be enjoyed by Scotland’s financial services, FinTech, and digital technology sectors, which will be able to operate with greater certainty once digital assets are formally recognised as property.

Small business impacts

Cost implications to implement the Bill for small businesses is expected to be negligible. The Bill will clarify the legal status of digital assets as objects of property and establish rules for ownership and its transfer. The Bill will not introduce any new reporting, monitoring or compliance requirements for businesses, and therefore should not generate additional obligations.

Investment

By recognising digital assets as property under Scots law, the Bill will provide greater legal certainty, which should be beneficial for global investors when deciding where to allocate capital. Perceived legal and operational risks can deter investment or drive businesses to base themselves in jurisdictions where the law is already settled. Primary legislation would position Scotland as a progressive, forward-looking jurisdiction with both stability and ambition, reinforcing its growing reputation as a financial centre.

Workforce and Fair Work

The Bill is not expected to create any direct impact on employment practices or workforce conditions. The Bill will not impose new operational obligations on businesses. It will provide legal certainty around the ownership and transfer of digital assets.

The Bill is unlikely to influence recruitment practices or working conditions, nor should it affect the ability of businesses to meet the Fair Work First principles. It does not create cost pressures that might reduce the likelihood of employers paying the real Living Wage or engaging in fair work practices.

Climate change/ Circular Economy

The Bill is not expected to have any material impact, positive or negative, on the ability of businesses to contribute to climate or circular economy targets. The Bill is of a technical legal nature with its key policy aim to clarify the status of digital assets under Scots private law. The Bill does not create new requirements that would impact business’ sustainability. Being digital in nature means these assets do not engage with the physical production, consumption, or disposal of goods and services. There is no need to consider elements such as reduction, reuse, or recycling of materials.

It is important to acknowledge that some digital asset systems such as those based on Proof-of-Work are energy-intensive. This includes Bitcoin, the largest cryptocurrency by market capitalisation. There are alternative consensus mechanisms that are significantly more environmentally sustainable. For example, Ethereum, transitioned to a Proof-of-Stake system in 2022, which uses a fraction of the energy compared to its previous Proof-of-Work model like Bitcoin.

The Bill neither encourages nor discourages the use of digital assets. Instead, it seeks to provide legal certainty and confidence for individuals and businesses choosing to engage with digital assets under Scots private law.

Consumer Duty

The Bill will include provisions on the good faith acquisition of digital assets, aimed at protecting persons in Scotland who engage in digital asset transactions. The intention is to protect persons who acquire digital assets in good faith and for value, even if there was a defect in the transferor’s title.

Protecting acquirers should enhance consumer confidence, given that digital assets are complex financial products and the risks may not be obvious to consumers looking to purchase or sell. This protection helps to reduce potential harm in an accessible yet technically challenging market.

While the regulation of financial services is a reserved matter for the UK Parliament, the Scottish Government is focussing on how Scots private law can accommodate and recognise digital assets. By doing so, it aims to provide greater legal certainty and protection for those transacting with digital assets within Scotland.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

The Bill is not expected to impact on the UK internal market or intra-UK trade in goods.

International Trade Implications

The Bill is not expected to have a direct impact on the import or export of specific goods or groups of goods. It does have the potential to influence trade in services, particularly financial services, FinTechs, and those businesses offering digital asset-based products. The Bill does not impose technical requirements on imported goods, nor does it create separate obligations for domestic and foreign businesses.

Relevant international standards and developments have been considered. The proposals are designed to align, where appropriate, with international best practice, including the Unification of Private Law (“UNIDROIT”) “Principles on Digital Assets and Private Law” and the recommendations of the Law Commission of England and Wales. The adoption of a technologically neutral definition of digital assets ensures that Scotland’s approach will remain consistent with evolving international frameworks, while also avoiding prescriptive rules that could become obsolete.

EU Alignment consideration

There is no identified interaction with the Scottish Government’s policy on EU alignment. An important policy consideration of the Bill is to align Scots law with private law developments across other jurisdictions (both within the UK and internationally) when appropriate to do so, to enable businesses operating in Scotland currently and those who wish to do so, to operate without legal friction.

Throughout policy development regard has been had to the International Institute for the UNIDROIT “Principles on Digital Assets and Private Law” to align any developments in Scotland with these wider international statement of principles.

Legal Aid

The Bill will have no impact on legal aid.

Digital impact

The Bill will be technology-neutral and as such able to accommodate changing digital technologies and markets. This will help to enable the legislation to remain relevant as technology evolves and new forms of digital asset emerge.

Business forms

The Bill is unlikely to drive introduction of any new forms of businesses.

Declaration

I have read the Business and Regulatory Impact Assessment and I am satisfied that it represents a fair and reasonable view of the expected costs, benefits and impact of the policy, and that these have been taken into account when making the policy decision. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

I am also satisfied that officials have considered the impact on consumers as required by the Consumer Scotland Act 2020 in completion of the Consumer Duty section of this BRIA.

Signed: Richard Lochhead MSP

Date: 23/09/2025

Minister's name: Richard Lochhead

Minister's title: Minister for Business

Scottish Government Contact point: digitalassets@gov.scot