The United Kingdom has formally passed a new law recognizing digital assets like cryptocurrencies and stablecoins as personal property. The move is being viewed by legal and industry groups as a step toward giving crypto holders better legal protections and more certainty under UK law.
The bill, officially titled the Property (Digital Assets etc) Bill, received royal assent this week, which means it has been approved by King Charles and is now law. The announcement was made in the House of Lords by Lord Speaker John McFall.
The new law confirms that digital assets can be treated as property under UK law. While UK courts have already handled crypto as property in certain cases, this treatment was based on judicial interpretation rather than formal legislation. A spokesperson from advocacy group CryptoUK stated,
“UK courts have already treated digital assets as property, but that was all through case-by-case judgments. Parliament has now written this principle into law.”
Digital Assets Recognized as a New Property Category
UK law traditionally divides personal property into two types: physical items (“things in possession”) and legal rights (“things in action”). Digital assets, such as cryptocurrencies, did not clearly fit into either category, which created legal uncertainty.
The new bill changes that by confirming that “a thing that is digital or electronic in nature” can be recognized as property, even if it does not fall under the traditional classifications. This follows recommendations made by the Law Commission of England and Wales in 2024, which argued that a new legal category was needed to reflect the unique nature of digital assets.
CryptoUK explained that this gives digital assets “a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases.”
Legal Certainty for Crypto Owners and Markets
The new law is expected to support the broader use of digital assets in the UK. According to CryptoUK, the legal change gives crypto users and businesses a stronger foundation for managing and transferring digital property.
“Digital assets can be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes,” the group posted on social media.
It added that this creates a “clear legal basis for ownership and transfer” in the digital economy.
The UK’s Financial Conduct Authority (FCA) reported that around 12% of UK adults now own some form of cryptocurrency. With legal definitions in place, the country may be better positioned to develop secure digital markets and new financial products.
