The United Kingdom has officially enacted a law recognizing digital assets like cryptocurrencies and stablecoins as property. This change is being celebrated as a move that will provide enhanced protection for cryptocurrency users.

On Tuesday, Lord Speaker John McFall announced to the House of Lords that the Property (Digital Assets etc) Bill received royal assent, confirming that it has been officially approved by King Charles and is now part of the law.

Freddie New, the policy chief at Bitcoin Policy UK, expressed on X that the passing of this bill marks a significant advancement for Bitcoin in the UK and for all who engage with it in the country.

“This provides digital assets with a much clearer legal structure, particularly for ownership verification, asset recovery in theft cases, and administration in insolvency or estate issues.”

In the UK, the legal framework through common law has previously indicated that digital assets are considered property, yet this bill aims to officially categorize cryptocurrencies as a new class of personal property as recommended by the Law Commission of England and Wales in 2024.

This legislative update enhances legal clarity for digital assets, ensuring that they can be unequivocally owned, retrieved in instances of theft or fraud, and integrated into liquidation and estate management processes.

The UK financial authority had highlighted late last year that approximately 12% of adults in the country own cryptocurrencies, an improvement from the previous 10%. Moreover, the UK plans to introduce a new regulatory framework for cryptocurrencies, set to align crypto enterprises with established financial services regulations, reinforcing the nation’s position as a progressive hub for cryptocurrency while bolstering consumer protection.