UK Legally Classifies Crypto as New Property Type Following Royal Approval

TLDR

• The UK has passed the Property (Digital Assets etc.) Act 2025, legally classifying digital assets as a new third property category.
• Bitcoin now receives formal property rights and legal protection, resolving longstanding ambiguity in UK law.
• Stablecoins are also included in the new classification, ensuring consistent legal treatment across digital asset types.
• The Act passed both Houses of Parliament with no amendments, following Law Commission recommendations dating back to 2023
• Industry groups say the law strengthens courts’ ability to handle disputes, fraud, asset recovery, and digital asset ownership claims.

The United Kingdom has passed a new law that formally classifies digital assets as a third category of property. The Property (Digital Assets etc.) Act 2025 received Royal Assent on Tuesday, finalizing its passage through Parliament. The law recognizes crypto assets as separate from physical goods or commercial rights.

Bitcoin Now Has Legal Protection Under Property Law

Bitcoin is now officially a type of property under UK law, separate from traditional financial assets or tangible items. The Act allows assets like Bitcoin to enjoy clear legal ownership and protection through recognized rights. Courts may now enforce property rights for Bitcoin under this new regulatory system.

Susie Ward, CEO of Bitcoin Policy UK, commented on the change in a public statement via X following the bill’s approval. “A third category of property now exists and it finally gives legal protection to the sats you hold,” she said. The organization said this would help remove legal complications for holders of Bitcoin.

Before this legislation, UK courts addressed crypto ownership in limited rulings without formal classification. Now, with legal clarity, Bitcoin holders have structured recourse under property law. The update resolves long-standing legal uncertainty in England’s traditional property laws.

Stablecoins Included in New Property Category

The law applies to stablecoins as well as cryptocurrencies like Bitcoin, setting equal legal standards across various digital assets. These assets will now fall into a newly defined property class, distinct from traditional financial instruments. The classification is designed to streamline disputes and legal claims involving stablecoin ownership.

CryptoUK, a national industry association, welcomed the legal recognition of these assets as part of a formal plan. The organization said on X that courts had previously treated crypto as property only on a case-by-case basis. This change, it noted, ensures courts now have firm statutory guidance.

The classification supports clearer rulings in litigation or fraud cases where digital holdings like stablecoins are involved. By setting consistent rules, the Act may help reduce legal delays in such proceedings. All rulings will now reflect the defined property status of these digital instruments.

UK Parliament Passes Bill Without Amendments

The Property (Digital Assets etc.) Act 2025 passed through both houses of Parliament with no proposed amendments. The bill was first introduced in the House of Lords in September 2024, following a 2023 recommendation. The Law Commission, a statutory body, originally suggested this reform. The short bill was streamlined for passage and received no formal opposition in Parliament during its readings.

This comes after the lawmakers moved quickly to secure legal certainty around digital asset ownership. The act’s language now provides courts with firm legal definitions for digital asset classification. Chief Policy Officer of Bitcoin Policy UK, Freddie New, called the change “possibly the biggest change in English property law” in centuries. He said it marked a clear shift from reliance on old interpretations.

Following this, the UK legal systems can now apply structured rules to all digital asset claims. CryptoUK also said that formal recognition of property rights in digital assets may support law enforcement in future crime cases. It explained that such classification would aid in asset recovery and dispute resolution. This shift could help courts handle theft or loss of digital assets more efficiently. The Act is now officially law following Royal Assent from King Charles III.

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