In a landmark move for the digital economy, the United Kingdom has officially passed legislation that legally classifies cryptocurrencies and other digital assets as property. The Property (Digital Assets etc) Bill received royal assent on Tuesday, December 3, 2025, after being approved by the House of Lords and signed by King Charles, making it an Act of Parliament.
This transformative step moves beyond previous case law, where UK courts treated digital assets like Bitcoin or NFTs as property on a case-by-case basis, to provide a solid statutory foundation. The new law codifies a recommendation made by the Law Commission of England and Wales in 2024, which argued for categorizing crypto as a new form of personal property to clarify legal ambiguities.
The legislation specifically aims to clarify critical areas that have been gray zones for users and legal professionals. It establishes clear rules for proving ownership of digital assets, which is vital for disputes and transactions. Moreover, it provides a clearer legal pathway for recovering stolen or fraudulently obtained crypto assets, a crucial development for victims of crypto scams. The law also clarifies how digital assets are handled in inheritance and bankruptcy cases, meaning crypto can be properly included in wills or estate planning.
Freddie New, policy chief at advocacy group Bitcoin Policy UK, stated on X that the bill becoming law is "a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here." Similarly, CryptoUK emphasized that the law gives "greater clarity and protection for consumers and investors" and provides crypto holders with the same confidence they expect with other forms of property.
The UK's finance authority reported late last year that roughly 12% of UK adults own cryptocurrency, up from 10% in its previous findings. This law is part of a broader effort by the UK to become a "global hub" for crypto, following plans revealed in April for a comprehensive crypto regulatory regime that would bring crypto businesses under similar rules to other finance companies.
By defining crypto as property, the UK government provides a stable foundation for the entire ecosystem, encouraging traditional financial institutions to develop products and services around digital assets and fostering greater mainstream integration. This move is expected to have a significant positive impact on the crypto market, enhancing legal certainty and investor protection in one of the world's leading financial centers.
