UK Enacts Law Recognizing Digital Assets as Property

According to Cointelegraph, the United Kingdom has officially passed legislation that categorizes digital assets, including cryptocurrencies and stablecoins, as property. This move is seen as a significant step towards enhancing protection for crypto users. The announcement was made by Lord Speaker John McFall in the House of Lords, confirming that the Property (Digital Assets etc) Bill received royal assent, with King Charles approving its transformation into an Act of Parliament. Freddie New, policy chief at Bitcoin Policy UK, expressed on X that the bill's enactment marks a major advancement for Bitcoin and its users in the UK. Previously, UK common law, based on judicial decisions, recognized digital assets as property. However, the new legislation aims to codify a recommendation from the Law Commission of England and Wales in 2024, suggesting that cryptocurrencies be classified as a distinct form of personal property for greater clarity. The advocacy group CryptoUK highlighted that UK courts have historically treated digital assets as property through individual case judgments. The new law solidifies this principle, providing digital assets with a clearer legal foundation, particularly in matters such as proving ownership, recovering stolen assets, and managing them in insolvency or estate cases. CryptoUK emphasized that the bill confirms digital or electronic 'things' can be objects of personal property rights. UK law traditionally categorizes personal property into two types: 'things in possession,' which are tangible items like cars, and 'things in action,' which are intangible rights such as contract enforcement. The bill clarifies that digital or electronic items are not excluded from personal property rights simply because they do not fit neatly into these categories. The Law Commission's 2024 report argued that digital assets could possess both qualities, and their ambiguous status in property rights laws could hinder dispute resolutions in court. CryptoUK further stated that the law provides greater clarity and protection for consumers and investors, offering crypto holders the same confidence and certainty expected with other forms of property. Digital assets can now be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes. The UK now has a clear legal basis for the ownership and transfer of crypto, positioning the country to support the growth of new financial products, tokenized real-world assets, and more secure digital markets. The UK's finance authority reported late last year that approximately 12% of UK adults own cryptocurrency, an increase from 10% in previous findings. Additionally, the UK unveiled plans for a crypto regulatory regime in April, aiming to bring crypto businesses under similar regulations as other financial companies, with the goal of establishing the country as a global hub for crypto while ensuring consumer protections.