The United Kingdom has passed a landmark law formally classifying cryptocurrencies, stablecoins, and other digital assets as a distinct form of personal property.
This development, announced on December 2, 2025, marks a significant shift in how digital assets are treated under English law, providing enhanced legal protections for holders and paving the way for greater innovation in the sector.
The Property (Digital Assets etc) Act 2025 also referred to as the Property (Digital Assets etc) Bill in earlier stages. Granted by King Charles III on December 2, 2025, as confirmed by Lord Speaker John McFall in the House of Lords.
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The Act introduces a third category of personal property specifically for “things that are digital or electronic in nature.” This includes crypto tokens, stablecoins, NFTs, and similar assets. Previously, UK common law treated digital assets as property on a case-by-case basis through court rulings, but they didn’t fit neatly into the traditional categories of “things in possession” (tangible items) or “things in action” (enforceable rights).
The law stems from recommendations by the Law Commission of England and Wales in 2023–2024, which highlighted legal ambiguities in handling digital asset disputes, such as theft, fraud, or bankruptcy.
The bill was introduced to the House of Lords in September 2024 and progressed through Parliament swiftly. This codification into statute offers several advantages. Crypto holders can now more easily prove ownership and seek recovery in legal cases, including theft or platform insolvencies. It aligns digital assets with traditional property rights, reducing reliance on judicial discretion.
Industry groups like CryptoUK and Bitcoin Policy UK have hailed it as a “massive step forward,” arguing it builds trust, deters illicit activities, and supports tokenization and digital finance growth.
CryptoUK noted it provides “greater clarity and protection for consumers and investors.” Experts predict this could position the UK as a global leader in crypto regulation, fostering innovation while maintaining safeguards. It may influence how courts handle related issues like inheritance or taxation of digital assets.
The move comes amid rising crypto adoption in the UK, with Bitcoin trading around $93,000 as of December 3, 2025. On X reactions have been overwhelmingly positive, with users calling it a “nation-state game theory play” for Bitcoin. CryptoUK’s announcement post quickly gained traction, emphasizing the law’s role in securing the future of digital assets.
The recommendations were developed through extensive consultation, including a 2021 call for evidence and a 2022 consultation paper. They advocate a balanced approach: leveraging common law where possible while proposing targeted statutory reforms.
The report concludes that English law is “sufficiently resilient and flexible” for most digital asset issues but requires clarification to enhance legal certainty, protect users, and facilitate market growth.
The report outlines four principal recommendations, focusing on property classification, expert guidance, collateral arrangements, and corporate law adaptations.
Legislate to explicitly recognize a third category of personal property for “things” that are neither “things in possession”. This would include crypto-tokens, NFTs, and potentially other digital/electronic assets like voluntary carbon credits.
Addresses uncertainty from the 1885 Colonial Bank v Whinney case, which limited property to two categories. Courts (e.g., AA v Persons Unknown [2019] and Tulip Trading v Van der Laan [2023]) had already treated some digital assets as property on a case-by-case basis, but statutory confirmation provides clarity for ownership, theft recovery, and inheritance.
This directly inspired the Property which create a multidisciplinary panel of industry experts, legal practitioners, academics, and judges to provide non-binding guidance on technical and legal issues related to digital asset control.
Ensures courts can handle emerging tech nuances without over-relying on judicial expertise. The government accepted this in September 2024, tasking the UK Jurisdiction Taskforce (UKJT) with implementation.
Amend the Financial Collateral Arrangements (No 2) Regulations 2003 (FCARs) to clarify that crypto-tokens can qualify as “financial collateral”. Propose a multidisciplinary project for a statutory framework on crypto collateral enforcement.
Digital assets often fall outside current FCARs, complicating their use in secured lending. This would enable faster, more efficient collateral enforcement, boosting DeFi and tokenization. HM Treasury is reviewing this as of 2024.
Undertake further work to adapt UK companies law for using crypto-token networks in issuing and transferring equity or other registered securities. Supports innovation in tokenized real-world assets while ensuring compatibility with existing securities rules.
These reforms aim to reduce fraud risks, enhance consumer protections, and align with the UK’s fintech ambitions. Industry bodies like CryptoUK praised them for building trust, while experts note they position England and Wales as a “world jurisdiction of choice” for digital assets.
This is a proactive step by the UK government to integrate crypto into its legal framework, contrasting with more fragmented approaches elsewhere. If you’re holding or trading crypto in the UK, this could simplify legal recourse—consult a specialist for personalized advice.