- The UK now legally recognizes crypto and NFTs as property under a new “digital assets” category.
- The law brings formal ownership rights, clearer recovery options, and stronger consumer protections.
- Industry groups say this establishes the foundation for broader digital-asset regulation.
The United Kingdom has taken a major leap into the digital era, formally recognizing cryptocurrency as property under the new Property (Digital Assets etc) Act. The law, which received Royal Assent from King Charles this week, modernizes centuries-old property rules by creating a brand-new legal category for digital assets — finally placing crypto and NFTs alongside traditional forms of ownership in UK law.
A Third Property Category for the Digital Age
Historically, UK property law recognized only two types of property: “things in possession,” like physical items, and “things in action,” such as debts or rights enforceable in court. But digital assets never fit neatly into either category. The new act solves that problem by establishing a third class that explicitly includes cryptocurrencies, NFTs, and similar blockchain-based assets. This gives digital property a clear legal identity, removing years of ambiguity over ownership, theft, and recovery.
Industry Reactions: More Clarity, More Protection
Crypto industry groups immediately welcomed the change. CryptoUK said the law is a major win for consumer protection, noting that the new framework allows digital assets to be formally owned, reclaimed after theft or fraud, and included within insolvency or estate settlements. Gurinder Singh Josan MP, co-chair of the Crypto and Digital Assets APPG, emphasized that legal recognition gives users “clear ownership rights” and stronger recovery options.
Previously, UK courts did treat crypto as property, but only on a case-by-case basis — leaving investors without consistent guarantees. This act closes that gap, turning scattered rulings into firm national policy.
A Foundation for Future Crypto Regulation
While the new category doesn’t settle taxation, exchange licensing, or DeFi rules, it lays crucial groundwork for more advanced regulatory frameworks. By defining what digital assets are in legal terms, the UK can now build more precise rules around custody, lending, inheritance, bankruptcy, and fraud enforcement. For institutions, this clarity may open the door to more compliant crypto operations in the country.
