UK Digital Asset Law Passes: A Landmark Victory for Crypto Property Rights
In a dramatic milestone for the country’s digital finance sector, the United Kingdom has formally passed a UK digital asset law that grants cryptocurrencies, stablecoins, and other digital “things” the same legal status as personal property.
The announcement came on Tuesday as Lord Speaker John McFall confirmed that the Property (Digital Assets etc) Bill had received royal assent — the final approval from King Charles III — officially turning the bill into binding law.
Advocates celebrated the moment as a historic leap forward.
Freddie New, policy chief at Bitcoin Policy UK, called the decision “a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it.”
Why the UK Digital Asset Law Matters: Property Rights Finally Codified
Up until now, digital assets were treated as property in the UK only through individual court decisions. Judges recognized crypto as property on a case-by-case basis — a system that lacked consistency.
The new law changes that.
For the first time, Parliament has formally codified digital assets as a new category of personal property, following a key 2024 recommendation from the Law Commission of England and Wales.
CryptoUK summarized the shift:
“Parliament has now written this principle into law.”
This gives crypto users:
- Clearer ownership rights
- Stronger protections in disputes
- A legal route to recover stolen assets
- A framework for including crypto in insolvency and estate cases
In short: digital assets now have stable, predictable legal footing.
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Digital Assets Recognized as Personal Property Under the UK Digital Asset Law
Under traditional UK property law, personal property fits into two categories:
- Thing in possession — physical items (cars, jewelry, etc.)
- Thing in action — enforceable rights (debts, contracts, etc.)
Digital assets didn’t fit neatly into either category.
This ambiguity made dispute resolution difficult, especially in cases involving theft, loss, or contractual disagreements.
The new UK digital asset law solves this by establishing that:
Digital or electronic “things” can be objects of personal property rights, even if they don’t fit the old categories.
The Law Commission previously argued that digital assets often have qualities of both categories, and the law finally acknowledges that reality.
Greater Clarity, Stronger Protection, and a More Competitive UK
CryptoUK applauded the bill for giving investors “greater clarity and protection,” noting that it places digital assets on equal footing with traditional property.
Because digital assets are now clearly recognized:
- They can be legally owned
- They can be recovered in cases of theft or fraud
- They can be handled during bankruptcy or estate proceedings
- They gain a clear legal basis for transfer
Advocates say this move will help the UK support:
- Tokenized real-world assets
- Emerging digital financial products
- A safer, more predictable crypto market
The clarity is expected to attract innovation rather than push companies abroad.
UK Digital Asset Law Arrives as Crypto Adoption Grows
The UK’s financial regulator reported that 12% of UK adults now own cryptocurrency, up from 10% the year prior — a strong indication of rising mainstream adoption.
Earlier this year, the UK also unveiled plans for a comprehensive crypto regulatory regime, aiming to bring digital asset firms under rules similar to traditional financial institutions. The goal:
to position the UK as a global crypto hub while safeguarding consumers.
With the passage of this law, Britain is now taking a major step closer to that vision.
