The United Kingdom now formally recognizes cryptocurrencies as property following the passing of a new law this week.
The Property (Digital Assets, etc.) Bill has received royal assent, the final step for a bill to become law after being passed by Parliament.
The law, signed into law by King Charles on Tuesday, was designed to modernize property law to take digital assets into account. Previously, property was classified 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, considering it an important step in legal recognition of digital assets and thus instilling greater confidence in users.
“This change provides greater clarity and protection to consumers and investors by ensuring that digital assets can be clearly owned, recovered in cases of theft or fraud and included within insolvency and estate processes,” trade association CryptoUK wrote in a post on X.
“By recognizing digital assets in law, the UK is giving consumers clear property rights, stronger protections and the ability to recover assets lost to theft or fraud,” wrote MP Gurinder Singh Josan, co-chair of the All-Party Parliamentary Group on Crypto and Digital Assets (APPG) in an emailed comment.
Previously, cryptocurrencies have been treated as property in courts, but this has been done on a case-by-case basis. This law constitutes the law of recognition.
