The new legislation grants bitcoin and digital assets the same legal status as traditional property, protecting ownership, inheritance, and recovery.
The United Kingdom has taken a step toward the formal recognition of cryptocurrencies, granting them the same legal standing as traditional assets. The British Parliament has approved a law that treats digital assets as full-fledged property.
The Property (Digital Assets etc) Bill received royal assent this week, officially becoming law after John McFall announced it in the House of Lords. With King Charles III’s approval, digital assets will now benefit from the protections offered by property law, moving out of the grey area where they had previously been placed, mostly defined by case-by-case judicial rulings.
Industry associations welcomed the move, calling it a long-awaited milestone. Bitcoin Policy UK described the legislation as “a huge step forward” for bitcoin and other digital assets. CryptoUK, the industry body, noted that Parliament has finally codified what judges had been applying through individual rulings.
Until now, UK common law often treated digital assets as property, but only through scattered and inconsistent court decisions. The new law follows the 2024 recommendations of the Law Commission of England and Wales, which urged lawmakers to classify cryptocurrencies as a distinct form of personal property to avoid uncertainty in disputes over ownership.
In British law, personal property traditionally falls into two categories: physical objects, known as “things in possession,” and contractual rights, known as “things in action.” The problem, as legal experts pointed out, was that cryptocurrencies did not fit neatly into either group.
The new legislation resolves this ambiguity by establishing that “a thing of a digital or electronic nature” can be treated as personal property, even if it does not meet traditional definitions. According to CryptoUK, this change will make it easier for courts to resolve disputes involving stolen funds, inheritance cases, or corporate bankruptcies involving digital holdings.
“This gives digital assets a much clearer legal footing, especially for proving ownership or recovering tokens after fraud,” the group said in a statement.
The UK government views this reform as part of a broader effort to position the country as a hub for digital finance. Data from the financial regulator shows that around 12% of British adults hold some form of cryptocurrency, a percentage that has steadily increased in recent years.
At the same time, the government is considering a ban on cryptocurrency donations to political parties, a move that could directly affect Reform UK, which recently became the first party in the country to accept digital assets.
The proposal is currently under review as part of the upcoming Elections Bill, according to sources familiar with internal discussions, although officials have not yet formally confirmed the plan. The debate follows Reform UK’s attempts to present itself—under the leadership of Nigel Farage—as the most pro–digital asset party in Britain.
