The United Kingdom has enacted a new law that officially recognizes digital assets, including cryptocurrencies and stablecoins, as property. Proponents believe this move will enhance protection for crypto users. On Tuesday, Lord Speaker John McFall announced in the House of Lords that the Property (Digital Assets etc) Bill had received royal assent, indicating King Charles' approval to transform the bill into an Act of Parliament.
Freddie New, the policy chief at Bitcoin Policy UK, expressed on X that this legislative development represents a significant advancement for Bitcoin and its users in the UK. Previously, UK common law, reliant on judicial decisions, recognized digital assets as property. However, this bill formalizes a 2024 recommendation from the Law Commission of England and Wales, suggesting that crypto should be classified as a new category of personal property for better clarity.
According to the advocacy group CryptoUK, while UK courts treated digital assets as property through individual judgments, the new law establishes this principle formally. This provides digital assets with a more defined legal status, particularly concerning ownership proof, asset recovery in theft cases, and management in insolvency or estate matters.
The bill affirms that digital or electronic entities can be classified as personal property. Under UK law, personal property is divided into "things in possession," which are tangible, like a car, and "things in action," which are intangible, such as contractual rights. The bill clarifies that a digital entity is not excluded from personal property rights merely because it does not fit these traditional categories. The Law Commission's 2024 report argued that digital assets could embody both attributes, and their ambiguous status could complicate legal disputes.
CryptoUK further highlighted that the law provides increased clarity and protection for consumers and investors, offering crypto holders the same confidence they have with other property types. Digital assets can now be clearly owned, recovered if stolen or involved in fraud, and included in insolvency and estate processes. The UK now possesses a well-defined legal framework for the ownership and transfer of crypto, positioning it to foster the growth of innovative financial products, tokenized real-world assets, and more secure digital markets.
A report from the country's finance authority last year indicated that approximately 12% of UK adults own cryptocurrency, reflecting an increase from a previous 10%. Additionally, in April, the UK unveiled plans for a crypto regulatory framework intended to align crypto businesses with the regulations governing other financial entities. This initiative aims to establish the UK as a global leader in the crypto sector while ensuring consumer protection.