The UK now officially recognizes cryptocurrency as property following the passing of a new law this week.
The Property (Digital Assets etc.) Act has received Royal Assent, the final stage of an Act which becomes law after being passed by Parliament.
The law, approved on Tuesday by King Charles, aimed to modernize property law to take into account digital assets. Previously, property fell into one of two categories: things in possession, like physical objects, and things in action, like debt.
The law establishes a third category which includes digital assets such as cryptocurrencies and non-fungible tokens (NFTs).
Crypto industry associations have welcomed the law, hailing it as an important step in the legal recognition of digital assets and thus instilling greater trust among 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 inheritance processes,” trade association CryptoUK wrote in an article 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.
Cryptocurrency has been treated as property in the courts before, but this was on a case-by-case basis. This act makes the law of recognition.
