UK Formally Recognises Crypto as Property in Landmark Digital Assets Act

• UK introduces a third legal category to formally classify digital assets as property, improving ownership certainty and legal protections.
• Courts will now benefit from updated legislation supporting fraud recovery, inheritance, and insolvency processes.
• Reform aligns with broader UK regulatory efforts, including stablecoin oversight and innovation support in digital finance.

Digital assets such as Bitcoin and stablecoins are now formally recognised as property in the United Kingdom after a new law received Royal Assent this week. The Property (Digital Assets etc) Act 2025 is intended to give clear ownership rights to holders of digital tokens, bringing them in line with existing kinds of personal property. 

Until now, assets were categorised either as tangible objects or enforceable rights, but digital items have now been placed into a newly established third category. Officials said this approach reflects the growing importance of blockchain-based value transfer within the economy.

The bill was approved by both Houses of Parliament without alteration before King Charles III completed the final step in legislative approval. The reform was based on advice from the Law Commission, which initially recommended the statutory change in 2023. 

CryptoUK, a major trade group, said courts have already taken the view that crypto can be treated as property, yet this new law offers better certainty for legal processes involving token recovery and inheritance rights. The association has also commented that the measure supports consumer protection by giving digital asset holders clear recourse when dealing with fraud or insolvency.

Related: China’s Central Bank Reasserts Crypto Ban, Warns Stablecoins Pose Major Financial Risks

Stronger Consumer Protections

Executives from advocacy organisations welcomed the Act as an extremely significant change to the framework of property law, pointing to its scale compared with developments not seen since very early periods in English legal history. Legal experts further stated that making the position explicit in legislation will help attract investment and strengthen London’s role in global digital finance. They said innovation involving tokenised markets is more likely to grow when legal treatment is less ambiguous.

The scope of the Act covers England, Wales and Northern Ireland, and leaves some flexibility for courts to interpret future kinds of technology as they emerge. A note from Parliament explained that property law has traditionally evolved through judgments and that overly strict definitions could hinder adaptation to advances in crypto systems. 

This reform is part of a wider set of UK crypto policies, including ongoing consultations by the Bank of England on stablecoin oversight to ensure the payments sector is prepared for greater digital use.

Related: South Africa Flags Crypto and Stablecoin Gaps as Emerging Threat to Financial Stability

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