UK formally recognises digital assets as personal property under new law
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The United Kingdom has taken a significant step in shaping its digital asset regulatory landscape, as the Property (Digital Assets etc) Bill has officially become law.
The legislation, which received royal assent on Tuesday following an announcement by Lord Speaker John McFall in the House of Lords, formally classifies digital assets, including cryptocurrencies and stablecoins, as property.
Advocates say the move provides long-awaited legal clarity for crypto holders and strengthens user protections at a time when digital assets continue to become more widely adopted across the country.
Codifying digital assets as property
Although UK courts had already treated digital assets as property through common law and case-by-case judgments, the new law codifies this principle in statute.
The change follows a 2024 recommendation by the Law Commission of England and Wales, which argued that digital assets should be recognised as a distinct category of personal property to address gaps and ambiguities in existing legal frameworks.
Freddie New, policy chief at Bitcoin Policy UK, said on X that the bill’s passage into law marks “a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
CryptoUK, another industry advocacy organisation, echoed this sentiment, noting that Parliament has now provided the legal certainty that previously relied on judicial interpretation.
The legislation clarifies that a “thing that is digital or electronic in nature” can be recognised as personal property, even if it does not fit neatly into the traditional categories of a “thing in possession” (physical property) or a “thing in action” (rights enforceable through legal action).
According to the Law Commission, digital assets can possess characteristics of both categories, and clearer classification is necessary to support reliable dispute resolution and legal processes.
Improved clarity for ownership and asset recovery
Industry groups say the new law enhances protections for consumers and investors by providing a firmer basis for establishing ownership and handling disputes involving digital assets.
CryptoUK said the act gives “greater clarity and protection” and allows digital assets to be “clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes.”
This clarification is particularly important as digital assets become more deeply integrated into financial markets and personal wealth portfolios.
The ability to assert property rights over digital assets can impact everything from recovering stolen crypto to resolving claims in bankruptcy proceedings.
Positioning the UK for digital finance growth
The move is also seen as part of a broader effort by the UK to strengthen its position in the global digital asset economy.
With roughly 12% of UK adults holding cryptocurrency—up from 10% in previous findings—the country has taken steps to expand regulatory oversight.
In April, the government outlined plans for a crypto regulatory regime that would subject crypto businesses to rules similar to those governing traditional financial firms, with the aim of balancing innovation with consumer protection.
CryptoUK said the new property framework gives the UK a “clear legal basis for ownership and transfer” of digital assets, supporting the development of tokenised real-world assets, new financial products, and more secure digital markets.
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UK Formally Recognizes Crypto as Property with New Digital Assets Law
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UK formally recognises digital assets as personal property under new law
Share:
The United Kingdom has taken a significant step in shaping its digital asset regulatory landscape, as the Property (Digital Assets etc) Bill has officially become law.
The legislation, which received royal assent on Tuesday following an announcement by Lord Speaker John McFall in the House of Lords, formally classifies digital assets, including cryptocurrencies and stablecoins, as property.
Advocates say the move provides long-awaited legal clarity for crypto holders and strengthens user protections at a time when digital assets continue to become more widely adopted across the country.
Codifying digital assets as property
Although UK courts had already treated digital assets as property through common law and case-by-case judgments, the new law codifies this principle in statute.
The change follows a 2024 recommendation by the Law Commission of England and Wales, which argued that digital assets should be recognised as a distinct category of personal property to address gaps and ambiguities in existing legal frameworks.
Freddie New, policy chief at Bitcoin Policy UK, said on X that the bill’s passage into law marks “a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
CryptoUK, another industry advocacy organisation, echoed this sentiment, noting that Parliament has now provided the legal certainty that previously relied on judicial interpretation.
The legislation clarifies that a “thing that is digital or electronic in nature” can be recognised as personal property, even if it does not fit neatly into the traditional categories of a “thing in possession” (physical property) or a “thing in action” (rights enforceable through legal action).
According to the Law Commission, digital assets can possess characteristics of both categories, and clearer classification is necessary to support reliable dispute resolution and legal processes.
Improved clarity for ownership and asset recovery
Industry groups say the new law enhances protections for consumers and investors by providing a firmer basis for establishing ownership and handling disputes involving digital assets.
CryptoUK said the act gives “greater clarity and protection” and allows digital assets to be “clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes.”
This clarification is particularly important as digital assets become more deeply integrated into financial markets and personal wealth portfolios.
The ability to assert property rights over digital assets can impact everything from recovering stolen crypto to resolving claims in bankruptcy proceedings.
Positioning the UK for digital finance growth
The move is also seen as part of a broader effort by the UK to strengthen its position in the global digital asset economy.
With roughly 12% of UK adults holding cryptocurrency—up from 10% in previous findings—the country has taken steps to expand regulatory oversight.
In April, the government outlined plans for a crypto regulatory regime that would subject crypto businesses to rules similar to those governing traditional financial firms, with the aim of balancing innovation with consumer protection.
CryptoUK said the new property framework gives the UK a “clear legal basis for ownership and transfer” of digital assets, supporting the development of tokenised real-world assets, new financial products, and more secure digital markets.
The post UK formally recognises digital assets as personal property under new law appeared first on Invezz
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UK Formally Recognizes Crypto as Property with New Digital Assets Law