The UK Parliament has formally enacted the Property (Digital Assets etc) Act, granting royal assent and establishing cryptocurrencies and stablecoins as recognized forms of personal property under UK law. This legislative milestone codifies recommendations from the Law Commission of England and Wales, which in 2024 advised that digital assets be categorized explicitly within the realm of personal property to resolve legal ambiguities.
Under the new law, digital assets are classified either as “things in possession” or “things in action,” aligning virtual currencies with traditional property frameworks. This distinction empowers holders with clear legal recourse in cases of theft, loss or contractual disputes. It also streamlines processes for asset recovery in insolvency and estate administrations, ensuring digital assets are treated on par with physical valuables.
The bill’s passage follows extensive debate in the House of Lords, where Lord Speaker John McFall emphasized the importance of legal certainty for consumers and investors in the nascent digital asset market. Advocacy groups such as Bitcoin Policy UK and CryptoUK praised the legislation for enhancing consumer protections and supporting the growth of tokenized real-world assets and Web3 innovations.
Regulatory bodies, including the Financial Conduct Authority (FCA), reported in late 2025 that approximately 12% of UK adults hold cryptocurrencies, reflecting growing mainstream adoption. The new property law is expected to bolster confidence among institutional players, enabling banks, custodians and fund managers to integrate digital asset services into existing frameworks.
Looking forward, the UK Government plans to implement a comprehensive crypto regulatory regime in April 2026, subjecting crypto businesses to rules analogous to those governing traditional financial services. This regulatory roadmap aims to position the UK as a global hub for digital finance, balancing innovation with consumer protection. Legal experts anticipate that the property law will serve as a model for other jurisdictions grappling with digital asset classification and governance.
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