UK Recognizes Crypto as Personal Property in New Law

The United Kingdom has enacted landmark legislation formally recognizing cryptocurrencies and other digital assets as personal property, providing long-sought legal clarity for owners amid rising adoption nationwide. The Property Digital Assets etc. Act received royal assent on Tuesday, with King Charles approving the bill after its passage through Parliament, as announced by Lord Speaker John McFall in the House of Lords.

The new law establishes a third category of personal property under UK statute, distinct from the traditional classifications of tangible items, known as things in possession, and intangible rights, such as debts or contracts, referred to as things in action. Digital assets, including Bitcoin, Ethereum, stablecoins, and non-fungible tokens, now fall into this category. This codifies what courts had previously determined on a case-by-case basis through common law rulings, resolving ambiguities that complicated ownership disputes and enforcement.

The legislation stems from recommendations by the Law Commission of England and Wales, issued in 2023 and 2024, which highlighted how digital assets did not fit neatly into existing property frameworks. The commission...