UK Establishes Legal Framework for Digital Assets, Recognizing Crypto as Property

The UK has taken a decisive step toward regulatory clarity for digital assets with the passage of the Property (Digital Assets, etc.) Act. The legislation formally classifies cryptocurrencies and electronic tokens as personal property, placing them on equal legal footing with traditional assets. This MOVE eliminates years of ambiguity in which courts relied on ad hoc rulings to settle disputes involving crypto.

Parliament’s decision codifies a 2024 recommendation from the Law Commission, providing a structured framework for ownership rights and dispute resolution. The shift is expected to accelerate institutional participation in the digital asset space while giving businesses and users greater confidence in the legal system’s ability to protect their holdings.

Market observers note the UK’s approach could serve as a model for other jurisdictions grappling with how to categorize emerging technologies. The legislation specifically addresses the challenge of fitting digital assets into existing property classifications—a hurdle that has complicated recovery efforts and stifled innovation.