The United Kingdom has taken a historic step in digital asset regulation by officially recognizing cryptocurrencies and other digital assets as personal property, delivering stronger legal protection for millions of crypto holders.

The newly approved Property (Digital Assets etc.) Act, which has now received Royal Assent, confirms that digital assets such as Bitcoin, NFTs, and other tokenized assets can be legally treated the same way as traditional property across England, Wales, and Northern Ireland. This makes the UK one of the first major economies in the world to enshrine crypto ownership directly into property law.

Previously, UK law only recognized two types of property:

Physical possessions (like cars, gold, or phones)

Legal rights (such as shares or debts)

The new legislation introduces a third legal category, designed specifically for digital assets—acknowledging their unique nature while granting them full property rights.

What This Means for Crypto Holders

Under the new framework:

Digital assets can now be inherited, just like traditional wealth

Crypto can be recovered during bankruptcy proceedings

Owners gain clearer legal protections against theft and fraud

Courts now have a stronger basis to resolve crypto-related disputes

With crypto-related scams on the rise, this legal clarity gives investors far greater confidence that their assets are protected under established property law.

Boost for Fintech and Blockchain Innovation

The move also strengthens the UK’s position as a global fintech and digital asset hub. With improved legal certainty, both early-stage startups and major blockchain firms are more likely to choose the UK as a base for operations. The legal services sector alone already contributes £42.6 billion annually to the economy and supports 384,000 skilled jobs.

Government View

Minister for Courts and Legal Services, Sarah Sackman KC MP, stated that the law removes legal ambiguity, simplifies disputes, and reinforces the UK’s role as a global center for fintech and legal innovation. She emphasized that the government aims to lead digital transformation, not simply react to it.

Market Impact

By placing crypto on equal legal footing with traditional assets like jewellery and valuables, the UK has significantly upgraded investor protection and reduced regulatory uncertainty for businesses. This is expected to attract fresh institutional interest and international investment into the country’s rapidly growing digital economy.

This landmark reform sends a strong message to global markets:

Cryptocurrency ownership in the UK is now fully recognized, protected, and future-proofed under the law.$BTC