UK Passes Legislation Formally Recognising Crypto as Property

Source: CryptoDaily Original Title: UK Passes Legislation Formally Recognising Crypto as Property Original Link: https://cryptodaily.co.uk/2025/12/uk-passes-legislation-formally-recognising-crypto-as-property The United Kingdom has passed a law formally recognising digital assets as personal property. The bill provides greater legal clarity for courts ruling on crypto-related cases.

The Property (Digital Assets etc) Act 2025 received Royal Assent on 2 December 2025.

UK Officially Recognises Crypto as a Third Category of Property

On Tuesday, the UK enacted legislation recognising digital assets as a distinct category of property. The law reached a major milestone after receiving Royal Assent from King Charles III earlier this week, meaning it has been formally approved and is now in force.

The Property (Digital Assets etc) Act 2025, which passed through both Houses of Parliament without amendment, confirms that digital assets can be subject to property rights separate from traditional categories - including physical objects and contractual rights.

The act defines digital assets or “objects of personal property rights” as:

"A thing (including a thing that is digital or electronic in nature) is not prevented from being the object of personal property rights merely because it is neither—

(a) a thing in possession, nor

(b) a thing in action."

This development is significant, as it gives statutory recognition to digital assets’ legal status as property. Digital asset holders now benefit from greater protection over ownership, inheritance claims, and recovery efforts. It also provides courts with clearer guidance when handling crypto-related disputes.

The bill was first recommended by the Law Commission of England and Wales—an independent statutory body—in 2023, and was introduced to the House of Lords in September 2024. The law applies to England, Wales, and Northern Ireland.

Industry Heavyweights Applaud the Legislation

The Act has been welcomed by industry stakeholders who have long advocated for formal protection of digital assets.

Susie Ward, CEO of Bitcoin Policy UK, wrote on social media:

“A third category of property now exists, and it finally gives legal protection to the sats you hold.”

Bitcoin Policy UK’s Chief Policy Officer, Freddie New, described the legislation as:

“…possibly the biggest change in English property law since the invention of beneficial title in the Middle Ages.”

Crypto Lobbying group, Crypto UK said in a statement:

“This change provides greater clarity and protection for consumers and investors by ensuring that digital assets can be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes. It marks a meaningful shift towards giving everyday holders the same confidence and certainty they expect with other forms of property.”

Crypto UK added that the development goes a long way to strengthen the “foundations for future innovation across the UK’s digital asset and tokenisation landscape.”