A bill clarifying that property laws apply to crypto was given royal assent in the UK, with advocates hailing the move as giving crypto “a much clearer legal footing.”
News
The UK has passed a bill into law that treats digital assets, such as cryptocurrencies and stablecoins, as property, which advocates say will better protect crypto users.
Lord Speaker John McFall the House of Lords on Tuesday that the Property (Digital Assets etc) Bill has received royal assent, meaning King Charles has formally approved it and it has now become law.
Freddie New, policy chief at advocacy group Bitcoin Policy UK, on X that the bill “becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
Common law in the UK, based on judges’ decisions, has established that digital assets , but the bill sought to codify a by the Law Commission of England and Wales in 2024 that crypto be categorized as a new form of personal property for clarity.
“UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” the advocacy group CryptoUK. “Parliament has now written this principle into law.”
“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,” it added.
Digital “things” now considered personal property
CryptoUK said that the bill confirms “that digital or electronic ‘things’ can be objects of personal property rights.”
UK law categorizes personal property in two ways: a “thing in possession,” which is tangible property such as a car, and and a “thing in action,” intangible property, like the right to enforce a contract.
The clarifies that “a thing that is digital or electronic in nature” isn’t outside the realm of personal property rights just because it is neither a “thing in possession” nor a “thing in action.”
The Law Commission argued in its report in 2024 that digital assets can possess both qualities, and said that their unclear fit into property rights laws could hamstring dispute resolutions in court.
Related:
Change gives “greater clarity” to crypto users
CryptoUK on X that the law gives “greater clarity and protection for consumers and investors” and gives crypto holders “the same confidence and certainty 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 added.
The group added that the UK now has a “clear legal basis for ownership and transfer” of crypto and the country would now be “better positioned to support the growth of new financial products, tokenised real-world assets, and more secure digital markets.”
The country’s finance authority late last year that roughly 12% of UK adults own cryptocurrency, up from 10% in its previous findings.
The UK also revealed plans for a in April that would bring crypto businesses under similar rules to other finance companies, aiming to make the country a global hub for crypto while promoting consumer protections.
Magazine:
