A significant legal milestone was reached last week when the Property (Digital Assets etc) Act received Royal Assent.

The legislation confirms that certain digital assets — including cryptocurrency tokens and non-fungible tokens (NFTs) — can now be formally recognised as personal property in England, Wales and Northern Ireland. In Scotland, the Digital Assets (Scotland) Bill, which aims to recognise digital assets as property, is currently moving through the parliamentary process.

This development places the UK among the first jurisdictions globally to grant digital assets the same legal status as more traditional forms of property. For businesses and individuals that use Bitcoin and other digital assets, the new law offers welcome clarity and reassurance.

By formally recognising digital assets as personal property, the legislation enhances the legal protections available to owners. These include:

  • Clearer legal rights in situations where digital assets are stolen.

  • The ability for cryptocurrency to be passed on through inheritance.

  • Recognition of certain digital assets during insolvency proceedings, allowing them to be recovered by creditors.

Overall, the new law should provide businesses with greater certainty regarding the legal status of any cryptocurrency they hold.

See: https://www.gov.uk/government/news/uk-among-first-countries-to-recognise-cryptocurrency-as-personal-property