The UK has enacted new legislation that officially classifies digital assets — including cryptocurrencies and stablecoins — as property, a change advocates say will strengthen protections for crypto users.
In the House of Lords on Tuesday, Lord Speaker John McFall announced that the Property (Digital Assets etc) Bill had received royal assent, confirming King Charles’ approval and formally making it law.
Freddie New, policy chief at Bitcoin Policy UK, wrote on X that the bill’s passage “is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
Although UK common law — built on judicial decisions — has already recognized digital assets as property, the new bill codifies a 2024 recommendation from the Law Commission of England and Wales to formally classify crypto as a distinct form of personal property for greater legal clarity.
“UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” advocacy group CryptoUK said. “Parliament has now written this principle into law.”
The group added that the legislation provides digital assets with a clearer legal foundation, particularly for proving ownership, recovering stolen crypto, and handling assets during insolvency or estate proceedings.
Digital “things” now firmly recognized as personal property
CryptoUK noted that the law confirms that “digital or electronic ‘things’ can be objects of personal property rights.”
UK law traditionally divides personal property into two categories:
- A “thing in possession” — tangible items like cars, and
- A “thing in action” — intangible rights such as contractual claims.
The bill clarifies that a “digital or electronic” asset is not excluded from personal property rights simply because it doesn’t fit neatly into either category. The Law Commission’s 2024 report argued that digital assets can exhibit qualities of both and warned that their ambiguous status could complicate legal disputes.
Greater clarity and protection for crypto holders
CryptoUK said on X that the new law offers “greater clarity and protection for consumers and investors,” giving crypto owners the same confidence they expect with other forms of property.
“Digital assets can be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes,” it said.
The group added that the UK now has a “clear legal basis for ownership and transfer” of crypto assets, positioning the country to better support new financial products, tokenized real-world assets, and more secure digital markets.
According to the UK’s financial regulator, around 12% of UK adults held cryptocurrency as of late last year, up from 10% in its previous survey.
In April, the government also set out plans for a comprehensive crypto regulatory framework that would bring digital asset firms under rules similar to those governing traditional financial institutions — part of an effort to make the UK a “global hub” for crypto while strengthening consumer protections.
