The U.K. formally recognized cryptocurrencies and stablecoins as personal property Tuesday after the Property (Digital Assets etc) Act 2025 received Royal Assent from King Charles III. The legislation establishes a third category of property rights that applies to digital assets including Bitcoin and non-fungible tokens.
The law codifies what courts had already been applying through case-by-case judgments, but elevates that principle into statute. Industry groups welcomed the move as a breakthrough for legal clarity and consumer protection.
Lord Speaker John McFall announced the Royal Assent in the House of Lords on Tuesday. The short bill passed both houses of Parliament without amendment.
What Happened
The Act resolves a longstanding ambiguity in English and Welsh law by confirming that digital assets can be the object of personal property rights even if they do not fit traditional categories.
Under existing law, personal property falls into two categories: "things in possession," such as physical objects like cars, and "things in action," such as debts or contractual rights. Cryptocurrencies and NFTs did not easily fit into either group.
The new law states that "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 falls outside those two categories.
The legislation implements recommendations from the Law Commission of England and Wales. The Commission published its final report in June 2023 after years of consultation, concluding that the common law system was flexible enough to accommodate digital assets but needed statutory confirmation to remove residual uncertainty.
CryptoUK, the country's first crypto and blockchain industry trade association, said the change brings clarity for proving ownership, recovering stolen assets, and handling digital holdings in insolvency or estate cases. The group noted that courts had already been treating crypto as property through individual judgments.
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"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," CryptoUK wrote.
Why It Matters
The legal recognition strengthens protections for the estimated 12% of U.K. adults who own cryptocurrency, according to the Financial Conduct Authority. That figure represents approximately 7 million people, up from 10% in previous findings.
Property rights allow owners to pursue legal remedies if their digital assets are stolen. Courts can now issue freezing orders and trace assets across wallets using established property law principles.
The legislation also clarifies that crypto can be included in bankruptcy estates and inherited through wills. Insolvency practitioners can now treat digital holdings as assets available to creditors if a business fails.
Bitcoin Policy UK CEO Susie Ward said the Act creates legal protection for Bitcoin holders. Chief Policy Officer Freddie New called it possibly "the biggest change in English property law" since the Middle Ages.
The government views the change as part of broader efforts to position Britain as a hub for digital finance. The Bank of England recently launched a consultation on regulating sterling-denominated stablecoins as part of preparations for wider use of digital money in payments.
The Act extends to England and Wales and Northern Ireland. It came into force the day it received Royal Assent.