New bill grants legal property rights to digital assets like cryptocurrencies and NFTs
The United Kingdom has officially recognised cryptocurrencies and stablecoins as legal property after the Property (Digital Asset etc) Bill received royal assent from King Charles. This landmark legislation creates a third category of property under UK law, alongside traditional property types like physical objects and debts.
Before the passing of this bill, there was legal ambiguity regarding whether digital assets such as cryptocurrencies and non-fungible tokens (NFTs) could be considered property under UK law. The new law aims to resolve this uncertainty and modernise property law to account for digital assets, giving them clear ownership and inheritance rights.
The bill allows digital assets to be owned, inherited, and even recovered in cases of theft, bringing them under the same protections as traditional forms of personal property. It also ensures that digital assets can be included in insolvency proceedings and estate settlements.
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The UK government states that this legislation will help reduce litigation by removing the need for courts to determine whether something qualifies as property, particularly when dealing with assets that don’t fit into the traditional categories. This will bring more certainty and protection for individuals and businesses involved in transactions with digital assets, ensuring they have legal recourse if their property is stolen.
Moreover, the legislation is expected to bolster the UK’s position as an attractive jurisdiction for cryptocurrency and other digital asset-related litigation. This new legal framework aligns with the government’s broader goal of creating a regulatory environment that is favourable for crypto-assets.
Nick Jones, founder and CEO of Zumo, praised the legislation, calling it a “landmark moment” in the modernisation of English property law. He added that the recognition of digital assets as personal property rights further legitimises the growing sector. As the Financial Conduct Authority (FCA) prepares to finalise operating rules in 2026, Jones sees this as a crucial step in making the UK a leading hub for crypto assets.
This move is also seen as a sign of the UK’s commitment to embracing innovation in the digital economy, with a reputation for strong legal and regulatory frameworks. With growing talent and investor interest, the UK is well-positioned to explore new avenues for economic growth in the cryptocurrency space.