MSPs back digital assets Bill with warning further legislation could be needed

Scottish Government legislation provides clarity on the ownership of digital assets, which could “open up economic opportunities”, the convener of a Holyrood committee has said.

Daniel Johnson, convener of the Economy and Fair Work Committee, was speaking as it gave its back to the general principles of the Digital Assets (Scotland) Bill.

Ministers brought forward the legislation to confirm the status of certain digital assets in the law, making clear they are objects which are capable of being owned.

While MSPs on the committee gave their initial approval to the legislation, they warned further changes in the law may be needed in future “given the pace of change in the digital landscape”.

The Bill defines a digital asset as something which is rivalrous – meaning its use by one person impacts its subsequent use by others.

The report explains: “Money and apples are rivalrous. If money is spent, it cannot be spent again. If an apple is eaten, no-one else can eat it.”

This distinguishes digital assets from data – with the report adding: “Data can be used again and again without consequences for other users. For example, sending a standard digital image to one person does not prevent it from being sent to lots of other people.”

Speaking as the report was published, Mr Johnson said digital assets – which can include digital art and collectibles, as well as cryptocurrencies – had “increasingly become part of our economy”.

But he added: “The lack of legal certainty around ownership can create problems for businesses and individuals, stifling investment and innovation.”

He said the Bill “aims to provide much-needed clarity which could open up new economic opportunities in Scotland”.