The United Kingdom has formally recognised cryptocurrencies and stablecoins as legal property, after the Property (Digital Asset etc) Bill received royal assent from King Charles.
Prior to this Bill, property fit into two categories: things in possession, such as physical objects, and things in action, such as debt.
The law, which passed both houses of Parliament without amendment, creates a third category that enables digital assets such as cryptocurrencies and non-fungible tokens (NFTs) to attract personal property rights.
The Act of Parliament, intends to modernise property law, ending legal uncertainty over whether digital assets meet the definition of property under UK legislation.
Under the new bill, digital assets can be clearly owned, inherited, and recovered in theft cases, included in insolvency and estate proceedings.
The UK government says the legislation aims to provide certainty and protection for people and businesses who possess and transact with such assets, allowing them rights under the law if their personal property is stolen.
It will also decrease litigation courts by taking out the need to determine if something can be property even if it doesn’t meet the traditional categories of personal property.
Furthermore it intends to ensure that the jurisdiction of English, Welsh, and Northern Irish law is an attractive place to deal with and litigate in respect to crypto-assets and other ‘third category’ things.
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