A Historic Legal Shift for Digital Assets
The United Kingdom has officially recognized cryptocurrencies as personal property, marking one of the most significant legal updates for digital assets in the Western world. With the new Property Act 2025 receiving royal assent this week, digital assets such as Bitcoin, stablecoins, and NFTs now enjoy the same legal protections as traditional property. Lord Speaker John McFall confirmed the bill’s enactment, noting that King Charles had formally approved it. This means crypto holders now receive the same legal standing as owners of physical goods, stocks, or intellectual property.
Why a New Property Category Was Needed
Under historic English common law, property was divided into two narrow groups: “things in possession” and “things in action.” But crypto did not neatly fit into either, creating messy court battles and legal uncertainty.
This gives digital assets a clear legal home, something the Law Commission has recommended since 2022.
Industry Voices Call It a Victory for Crypto
The reaction from the UK crypto industry was overwhelmingly positive. CryptoUK, the nation’s leading advocacy group, praised the law:
BREAKING: UK Law Now Officially Recognises Digital Assets 🇬🇧
— CryptoUK 🇬🇧 (@CryptoUKAssoc) December 2, 2025
The UK has today taken an important step forward in recognising the role of digital assets in the modern economy. A new law has come into effect confirming that qualifying digital assets — including crypto-tokens,… pic.twitter.com/9QNADCXoz4
BREAKING: UK Law Now Officially Recognises Digital Assets 🇬🇧
— CryptoUK 🇬🇧 (@CryptoUKAssoc) December 2, 2025
The UK has today taken an important step forward in recognising the role of digital assets in the modern economy. A new law has come into effect confirming that qualifying digital assets — including crypto-tokens,… pic.twitter.com/9QNADCXoz4
Freddie New, CEO of Bitcoin Policy UK, added that this reform is “a massive win for Bitcoin users”, highlighting how it strengthens asset recovery, inheritance planning, and legal certainty for investors. Previously, courts had made individual rulings treating crypto as property, but there was no unified legal doctrine-until now.
Update - this Bill is now on the way to the King's desk for Royal Consent and will shortly become law. See thread for some extra details👇
— Freddie New (@freddienew) December 2, 2025
A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi
Update - this Bill is now on the way to the King's desk for Royal Consent and will shortly become law. See thread for some extra details👇
— Freddie New (@freddienew) December 2, 2025
A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi
Stronger Tools for Courts, Police, and Insolvency Cases
By classifying crypto as personal property, UK courts can now handle disputes involving lost access, stolen keys, exchange collapses, or hacked funds with far more clarity. Insolvency practitioners also gain authority to treat crypto similarly to traditional assets, enabling probate claims, liquidation processes, and fraud investigations to proceed more smoothly. The act also simplifies asset tracing, meaning stolen crypto can be more easily frozen, recovered, or pursued across jurisdictions.
Growing Adoption Pushes Policymakers Toward Reform
The UK’s push for legal clarity arrives as crypto adoption accelerates. According to the Financial Conduct Authority, 12% of UK adults owned crypto in 2024, up from 10% the year before. This rising ownership sparked pressure for better consumer protections and more reliable rules. The government says the new law will help drive innovation in tokenization, digital securities, and modern financial markets, positioning the UK as one of Europe’s more crypto-friendly jurisdictions.
