• Crypto recognized as personal property under new UK law, offering greater security.
• Law ensures clearer ownership, recovery, and handling of digital assets in legal cases.
• UK plans new crypto regulations to strengthen consumer protection and boost industry growth.

The UK has enacted a digital asset law that identifies digital assets such as cryptocurrencies and stablecoins as a type of property. The proponents believe that it will offer greater security to crypto users.

On Tuesday, Lord Speaker John McFall announced in the House of Lords that the Property (Digital Assets etc) Bill had the royal assent, that is, it was formally approved by King Charles. Freddie New, chief policy officer of Bitcoin Policy UK, celebrated the enactment on X by claiming it was a monumental advancement for Bitcoin and the rest of digital asset users in the UK.

The judicial rulings of the UK common law have declared that digital assets are property. Nevertheless, the new bill is intended to codify a 2024 recommendation by the Law Commission of England and Wales to categorize digital assets as a new category of personal property.

Crypto Recognized as Personal Property Under UK Law

According to the advocacy group CryptoUK, the digital assets were treated as property, although only by case-by-case decision-making by UK courts. Parliament has now officialized it.

The group added that this law gives more legal status to digital assets by making it simpler to establish ownership of digital assets, reclaim stolen digital assets, and deal with them under insolvency or estate proceedings.

The bill confirms the ability of digital and electronic assets to be ruled as personal property. According to the UK law, there are two types of personal property: the things in possession, like a car, and the things in action, like the right to pursue a contract.

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The bill also makes it clear that since digital assets do not clean up in either of the latter categories, they are not prohibited under personal property rights.

Crypto Holders Gain Legal Assurance with New UK Legislation

The report of the Law Commission in 2024 stated that both properties can be attributed to digital assets. It pointed out that unclear classification has restricted property rights and court dependency on cases in courts.

CryptoUK declared that the legislation offers better clarity and protection to consumers and investors. It stated that digital asset holders have gained the confidence and assurance they have with other types of property.

The group reiterated that now the digital assets can be clearly owned, recovered in the event of theft or fraud, and also be part of insolvency and estate procedures. The finance regulator in the UK published last year that an estimated 12% of the UK adults are holding digital assets, a figure that was 10% in earlier reports.

The UK is also scheduled to introduce a new crypto regulatory regime in April. The aim is to subject the crypto businesses to the same regulations as other financial businesses, making the country a global digital asset hub in addition to strengthening consumer protection.

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