The United Kingdom has officially taken one of its most decisive steps yet toward establishing digital asset clarity. A new law now categorizes cryptocurrencies and other digital assets as personal property — a shift that advocates say will offer stronger protection and greater legal certainty for crypto users across the nation.
The Property (Digital Assets etc) Act received royal assent on Tuesday, with Lord Speaker John McFall confirming that King Charles approved the bill, officially making it law.
A New Era for Crypto Ownership Rights in the UK
Freddie New, head of policy at Bitcoin Policy UK, called the development a “massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
While UK courts had previously treated digital assets as property through case-by-case judgments, the new law codifies this principle into legislation for the first time. CryptoUK, an industry advocacy group, emphasized that the bill brings long-needed clarity:
“This gives digital assets a much clearer legal footing — especially for proving ownership, recovering stolen assets, and dealing with insolvency or estate matters.”
Digital Assets Are Now Legally ‘Personal Property’
Traditionally, UK law splits personal property into two categories:
- •Things in possession — physical items like vehicles or cash
- •Things in action — intangible rights like contracts or debts
Until now, digital assets didn’t fit neatly into either category.
The new law clarifies that digital or electronic “things” are valid objects of personal property rights, even if they don’t meet the historic definitions. This follows the 2024 Law Commission recommendation that digital assets deserve their own recognized category due to their unique properties.
What This Means for Crypto Users
Advocacy groups say the change enhances safeguards for holders and investors:
- •Crypto ownership is now legally recognized
- •Stolen digital assets can be pursued and recovered more easily
- •Clearly defined rules apply during insolvency, bankruptcy, and estate cases
- •Market participants gain stronger protection similar to traditional property laws
CryptoUK added that this legal clarity positions the UK to accelerate innovation in areas like tokenized real-world assets, institutional crypto adoption, and secure digital marketplaces.
A Growing Crypto Nation
The Financial Conduct Authority (FCA) reported that 12% of UK adults now own cryptocurrency, up from 10% the year before — showing increasing mainstream interest.
This legal update follows the government’s plans, revealed earlier this year, to build a comprehensive crypto regulatory framework aimed at making the UK a global crypto hub while ensuring strong consumer protection.