UK Enacts New Law Giving Digital Assets Full Property Status

The United Kingdom has formally enacted a new law that places digital holdings firmly within its property framework. Supporters say the move will give everyday users stronger protection and clearer rights. The bill secured royal assent this week, with King Charles’ approval marking its final step into national law.

The legislation, known as the Property (Digital Assets etc) Act, settles a long-running debate about how digital holdings should be treated in legal disputes. Until now, courts had recognized them as property only through individual rulings. This left uncertainty about how ownership claims, theft cases, or insolvency proceedings should be handled.

Freddie New, policy chief at Bitcoin Policy UK, said the law’s passage represents “a massive step forward” for people in the country who rely on digital tools for saving or transacting.

Clarity After Years of Case-by-Case Judgments

Before this law, courts relied on common-law principles to determine whether digital items counted as property, deciding each case separately. Advocacy group CryptoUK said parliament’s decision finally puts those principles into statute, offering consistency across the legal system.

According to the group, the new act confirms that digital or electronic items can fall under personal property rights, even though they don’t neatly fit into traditional categories. UK law historically defined property as either a physical object, such as a vehicle, or an intangible claim, like the right to enforce a contract. Digital holdings didn’t cleanly align with either, creating friction during disputes.

A report by the Law Commission in 2024 warned that this gap could slow or complicate court cases. The new act adopts the commission’s recommendation to recognize a separate category within personal property that accommodates digital forms of value.

A Stronger Foundation

CryptoUK said the law will help individuals prove ownership, recover stolen items, and resolve disputes involving estates or bankruptcies with far more certainty. The group added that the country now has a “clear legal basis” for transfers and long-term custody, which could support the growth of token-driven financial services and more secure digital marketplaces.

Government data released last year estimated that around one in eight adults in the country now hold some form of digital asset, a figure that continues to rise. Officials have also outlined plans for a broader crypto oversight system to bring digital-asset businesses under rules similar to those governing traditional finance.