UK Enacts Legislation to Clarify Cryptocurrency Property Regulations

The UK has enacted a law recognizing digital assets, including cryptocurrencies and stablecoins, as property, a move that proponents argue will enhance protections for crypto users.

On Tuesday, Lord Speaker John McFall announced in the House of Lords that the Property (Digital Assets etc) Bill received royal assent, signifying King Charles’ approval to transform the bill into an Act of Parliament.

Freddie New, policy chief at advocacy group Bitcoin Policy UK, said on X that the legislation “becoming law is a significant advancement for Bitcoin in the UK and for all its users.”

UK common law, established through judicial decisions, has defined digital assets as property, but this bill aimed to codify a recommendation from the Law Commission of England and Wales in 2024 to classify crypto as a distinct type of personal property for greater clarity.

“UK courts have previously regarded digital assets as property, but this was determined through individual case rulings,” said the advocacy group CryptoUK. “Now, Parliament has formalized this principle into law.”

“This provides digital assets with a much more defined legal status — particularly useful for demonstrating ownership, recovering stolen assets, and addressing them in insolvency or estate matters,” it added.

Digital “items” now classified as personal property

CryptoUK stated that the bill confirms that “digital or electronic ‘items’ can constitute personal property rights.”

UK law categorizes personal property as two types: a “thing in possession,” signifying tangible property like a car, and a “thing in action,” which refers to intangible property, such as rights to enforce a contract.

The bill clarifies that “a digital or electronic item” is not excluded from personal property rights merely because it does not fit as a “thing in possession” or a “thing in action.”

The Law Commission argued in its 2024 report that digital assets can embody both characteristics, noting that their ambiguous classification within property rights might complicate court dispute resolutions.

Related: Group of EU banks pushes for a euro-pegged stablecoin by 2027

Change offers “greater clarity” to crypto users

CryptoUK said on X that the new law provides “greater clarity and protection for consumers and investors,” enabling crypto holders to have “the same assurance and certainty associated with other forms of property.”

“Digital assets can be distinctly owned, reclaimed in instances of theft or fraud, and considered within insolvency and estate proceedings,” it added.