The U.K. has officially classified cryptocurrency as property following the enactment of a new law this week.
The Property (Digital Assets etc) Act obtained Royal Assent, marking the final stage of the legislative process after its approval by Parliament.
This legislation, endorsed by King Charles on Tuesday, aims to update property law to encompass digital assets. Historically, property was categorized into two types: tangible items, like physical objects, and intangible items, such as debts.
The new law introduces a third category that encompasses digital assets, including cryptocurrencies and non-fungible tokens (NFTs).
Representatives from the crypto industry embraced the law, viewing it as a significant advancement in the legal acknowledgment of digital assets, which will enhance user confidence.
“This update offers increased clarity and security for consumers and investors by confirming that digital assets are clearly identifiable, recoverable in cases of theft or fraud, and can be considered in insolvency and estate matters,” trade group CryptoUK stated in a post on X.
“By formally recognizing digital assets, the U.K. is granting consumers defined ownership rights, stronger safeguards, and the means to retrieve assets lost to theft or fraud,” remarked Gurinder Singh Josan MP, co-chair of the Crypto and Digital Assets All Party Parliamentary Group (APPG), in an email comment.
Previously, cryptocurrency was treated as property in court in a case-by-case manner; this act codifies that recognition into law.
