The United Kingdom has moved a step closer to giving crypto holders the same legal footing as owners of traditional assets after Parliament approved a new law that formally treats cryptocurrencies and stablecoins as property.
The Property (Digital Assets etc) Bill was granted royal assent this week, confirming it as law, after being announced in the House of Lords by John McFall.
Bitcoin Policy UK called the law “a massive step forward” for Bitcoin and other digital assets, while trade body CryptoUK said Parliament has now written into statute what judges had already been applying through individual cases. Until now, common law had often treated digital tokens as property, but only through scattered judgments.
Industry groups welcomed the decision as a long-awaited breakthrough.
Under UK law, personal property traditionally falls into two categories: physical objects, known as “things in possession,” and contractual rights, referred to as “things in action.”
The new law follows advice issued in 2024 by the Law Commission of England and Wales, which urged lawmakers to classify crypto as a distinct form of personal property to avoid uncertainty around ownership disputes.
“This gives digital assets a much clearer legal footing, especially for proving ownership or recovering tokens after fraud,” the group said in a statement. Data from the financial regulator shows around 12% of UK adults hold some form of cryptocurrency, a figure that has risen steadily in recent years.
CryptoUK said this change makes it easier for courts to settle disagreements involving stolen funds, inheritance cases or company failures involving digital holdings.
