The United Kingdom has taken a significant step forward in regulating the cryptocurrency industry by officially recognizing digital assets as property, according to Cointelegraph. The newly enacted legislation marks a major development that is expected to boost security and clarity for crypto users. The ‘Property (Digital Assets etc) Bill’ passed its final stage with Royal Assent from King Charles, ensuring its transition into an Act of Parliament. Lord Speaker John McFall officially announced the bill’s passing in the House of Lords.
Significance
Freddie New, policy chief at Bitcoin Policy UK, celebrated this change on X, highlighting that it represents a significant advancement for Bitcoin and its users in the UK. While previous UK law relied on established case law to determine property rights, this legislation codifies recommendations made by the Law Commission of England and Wales in 2024, explicitly classifying cryptocurrencies as personal property.
Clarifying Legal Status
CryptoUK further emphasized that the bill confirms digital assets as objects of personal property rights. The group notes that UK courts have historically considered digital assets as property through individual case judgments. This new law provides a clear legal foundation for these assets, particularly in matters like proving ownership, recovering stolen assets, and navigating insolvency or estate cases.
Expanding Legal Scope
Traditionally, UK law categorizes personal property into two types: ‘things in possession’ (tangible items) and ‘things in action’ (intangible rights). This new legislation clarifies that digital assets, despite their intangible nature, can be considered objects of personal property rights. The Law Commission’s 2024 report suggested this ambiguity could hinder legal disputes.
Benefits for Crypto Market
CryptoUK highlighted that the law provides increased clarity and protection for consumers and investors, offering crypto holders the same confidence and certainty associated with other forms of property. Digital assets can now be clearly owned, recovered in theft or fraud cases, and included in insolvency and estate processes. The UK now has a clear legal basis for cryptocurrency ownership, paving the way for innovation, especially with new financial products, tokenized real-world assets, and more secure digital markets.