Supporters say the new law ends long-standing uncertainty. Common law treated digital assets as property in many cases, yet they did not fit neatly into existing categories. The Law Commission argued in 2024 that can hold qualities of both possession and action. It said unclear rules could hinder effective dispute resolution.
The new act states that a digital item does not lose eligibility for property rights simply because it is electronic. This definition opens the door for smoother handling of cryptocurrencies, stablecoins, and related assets within the legal system.
Policy UK called the act a major step for users in the country. He said it strengthens the position of people who hold or use digital assets daily. CryptoUK added that digital assets can now be included consistently in bankruptcy and estate matters.
This law arrives as the UK faces pressure to match progress made in the EU and the US. Regulators had been criticized for the slow development of a modern crypto framework. As crypto ownership expands, demand for firm legal foundations continues to rise.
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