10 December 2025
The United Kingdom has passed a law that treats digital assets, such as cryptocurrencies and stablecoins, as property. Supporters argue that this measure will harm users of crypto will better protect. Lord Speaker John McFall announced in the House of Lords on Tuesday that the Property (Digital Assets etc.) Bill has received Royal Assent, meaning King Charles has formally approved it and it has become law.
Freddie New, policy officer at the advocacy organization Bitcoin Policy UK, commented on X: “The law now in place is a huge step forward for Bitcoin in the UK and for everyone who owns and uses it here.”
The UK's common law system, which is based on judicial decisions, has already established that digital assets are property. However, the law's purpose was to enshrine a recommendation from the 2024 report of the Law Commission of England and Wales, which recommended classifying crypto as a new form of personal property. This codification provides clarity and consistency in the legal status of digital assets.
According to the advocacy group CryptoUK, British courts had already begun to consider digital assets as property, but this was based on individual rulings. "Parliament has now enshrined this principle in law," the organization states. "This gives digital assets a much clearer legal framework—particularly when proving ownership, recovering stolen assets, and in insolvency or probate."
CryptoUK emphasizes that the law confirms that digital or electronic "things" can fall under personal property rights. British law categorizes personal property into two parts: "thing in possession," which is tangible property such as a car, and "thing in action," which concerns immovable property such as the right to enforce a contract.
The law clarifies that an "thing that is digital or electronic in nature" can be valid within the framework of personal property rights, even if it doesn't fall into the categories mentioned above. The Law Commission stated in its 2024 report that digital assets can possess properties of both tangible and immovable property. The unclear framework for how they fit into property rights laws can delay disputes in court.
CryptoUK noted that this law “provides greater clarity and protection for consumers and investors” and gives crypto holders “the same certainty they expect from other forms of ownership.” It allows users to clearly own digital assets, recover them in cases of theft or fraud, and integrate them into insolvency and probate processes.
The organization also added that the UK now has a "clear legal basis for the ownership and transfer" of crypto and is better positioned to support the growth of new financial products, tokenized assets, and safer digital markets. Reports from the Financial Conduct Authority (FCA) show that approximately 12% of UK adults own cryptocurrency, a 10% increase from previous findings.
Plans were also unveiled in April for a regulatory framework for the crypto sector, designed to ensure that crypto companies are subject to similar rules as other financial institutions. This goal aims to position the UK as a global crypto hub while simultaneously promoting consumer protection.
How does this law affect the status of digital assets in the UK?
The law gives digital assets formal legal status as property, meaning they are now better protected within the UK legal framework. This also facilitates proof of ownership and the ability to recover stolen assets.
What are the potential benefits for crypto investors?
Investors can now count on greater legal protection and clarity regarding the ownership and transfer of their digital assets. This creates a safer environment, which can attract new investment in the sector.
What impact will the law have on the future development of crypto products in the UK?
With this clear legal foundation, the UK is well-positioned to promote the development of innovative financial products, tokenized assets, and secure digital markets, which can accelerate innovation in the crypto sector.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
