The United Kingdom has officially enacted a law that classifies cryptocurrencies, stablecoins, and other digital assets as property — a shift that advocates believe will significantly strengthen protections for crypto users. Lord Speaker John McFall announced to the House of Lords on Tuesday that the Property (Digital Assets etc) Bill received royal assent, meaning King Charles has signed off on it and the measure is now law.

Freddie New, policy chief at Bitcoin Policy UK, described the development as a major milestone, stating 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.” Although courts had previously treated digital assets as property through individual rulings, the bill codifies a recommendation from the Law Commission of England and Wales to formally categorize crypto as a new class of personal property.

CryptoUK welcomed the change, saying: “UK courts have already treated digital assets as property, but that was all through case-by-case judgments. Parliament has now written this principle into law.” The group added that the legal update provides clearer foundations for determining ownership, recovering stolen digital assets, and handling them in insolvency or inheritance matters.

Digital assets become eligible for property rights

The new law confirms that digital or electronic “things” can be objects of personal property rights. Under UK law, personal property is typically split into two categories: a “thing in possession,” meaning physical items like vehicles, and a “thing in action,” which covers intangible rights such as contractual claims. The bill clarifies that digital assets do not fall outside these categories simply because they do not fit neatly into either one.

The Law Commission previously argued that digital assets can contain elements of both property types, and that an unclear classification could complicate court cases involving disputes over ownership or loss.

Stronger consumer protection and market clarity

CryptoUK said the legislation brings “greater clarity and protection for consumers and investors” and helps ensure that crypto holders have “the same confidence and certainty they expect with other forms of property.” According to the group, digital assets can now be more easily reclaimed in instances of fraud or theft and processed appropriately during insolvency or estate proceedings.

The organization also noted that the UK now has a firm legal foundation for the ownership and transfer of crypto, positioning the country to support tokenized real-world assets and more secure digital markets.

Interest in crypto among British consumers has continued to rise. Data released late last year showed that around 12% of UK adults own digital assets, up from 10% in previous findings.

In addition, the government outlined a plan in April to introduce a comprehensive regulatory framework for crypto firms, aiming to align them with existing financial rules while encouraging innovation and safeguarding users.

Sources:

https://www.fca.org.uk/news/press-releases/fca-finds-crypto-ownership-continues-rise-it-delivers-plans-regulate-crypto

https://cointelegraph.com/news/uk-takes-massive-step-forward-passing-property-laws-for-crypto

https://parliamentlive.tv/Event/Index/b8778a6a-0e87-4435-abb2-aaaa47d47944

https://www.legislation.gov.uk/ukpga/2025/29/pdfs/ukpga_20250029_en.pdf

https://x.com/CryptoUKAssoc/status/1995922112222298582

https://x.com/CryptoUKAssoc/status/1995872556851527848

https://x.com/freddienew/status/1995880186705743952