The UK now formally recognizes cryptocurrency as property after passing a new law this week.
The Property (Digital Assets etc) Act received Royal Assent, the final step in a bill becoming law after being passed by Parliament.
The law, approved by King Charles on Tuesday, was designed to modernize property law to account for digital assets. In the past, property fell into one of two categories: things in possession, such as physical objects, and things in action, such as a debt.
The law establishes a third category that includes digital assets such as cryptocurrencies and non-fungible tokens (NFTs).
Crypto industry associations welcomed the law, hailing it as an important step in the legal recognition of digital assets and therefore instilling greater confidence in users.
“This change provides greater clarity and protection for consumers and investors by ensuring that digital assets can be clearly owned, recovered in the event of theft or fraud, and included in insolvency and estate proceedings,” industry association CryptoUK wrote in a post on X.
“By recognizing digital assets in law, the UK gives consumers clear ownership rights, stronger protections and the ability to recover assets lost through theft or fraud,” wrote Gurinder Singh Josan MP, co-chair of the Crypto and Digital Assets All Party Parliamentary Group (APPG) in an emailed comment.
Cryptocurrency has previously been treated as property in court, but it has been on a case-by-case basis. This Act makes the Recognition Act.
