Millions of cryptocurrency holders in the UK will gain stronger legal protection after a landmark law formally recognising digital assets as personal property received Royal Assent this week.

The Property (Digital Assets etc) Act confirms that assets such as Bitcoin, other cryptocurrencies and non-fungible tokens (NFTs) can be treated in law like traditional forms of property. The move places England, Wales and Northern Ireland among the first jurisdictions in the world to provide this legal certainty.

The change strengthens protections for victims of digital theft and fraud, giving owners clearer legal rights when assets are stolen. It also ensures that cryptocurrencies can be inherited, recovered during bankruptcy, and treated by creditors in the same way as conventional assets.

The legislation forms part of the Government’s wider Plan for Change aimed at boosting growth and reinforcing the UK’s status as a global centre for legal and financial innovation. Ministers say the reform will make the UK a more attractive location for fintech firms ranging from start-ups to multinational companies, in a sector already worth billions to the economy.

Minister for Courts and Legal Services, Sarah Sackman KC MP, said: This new law will keep Britain at the heart of the international legal industry. By clarifying the status of digital assets, we remove uncertainty, simplify disputes, and cement the UK’s position as the centre for fintech innovation.

This government doesn’t adapt to change but leads it. Through our Plan for Change we will continue to boost growth across the £42.6 billion legal services sector.

Until now, UK law has recognised only two types of property: “things in possession”, such as vehicles, jewellery or mobile phones, and “things in action”, which cover legal rights like debts and shares. The new Act allows for the creation of a further category designed specifically for certain digital assets, acknowledging their unique characteristics while granting them full legal status as personal property.

As cryptocurrency-related crime continues to rise, the government says the reforms will help victims pursue legal remedies more effectively and reduce costly disputes by giving businesses certainty over how digital assets are treated in law.

The legal services industry currently contributes £42.6 billion a year to the UK economy and employs around 384,000 people. Ministers argue that keeping the law aligned with technological change is critical to maintaining the UK’s position as the preferred legal jurisdiction for international business. Photo by edwinchuen, Wikimedia commons.