UK Law Now Recognizes Cryptocurrencies and Digital Assets as Property

Highlights:

• The Property Act makes digital assets official personal property under UK national law.
• Parliament’s rule gives courts clearer guidance for ownership disputes and asset recovery.
• Officials say updated property law strengthens consumer protection and supports crypto market growth.

A major change in UK law took effect after royal assent confirmed a new rule for digital assets under national property rules. The Property (Digital Assets etc) Act became active when Lord Speaker John McFall announced its approval in the House of Lords on Tuesday. The new rule brings digital items like cryptocurrencies and stablecoins clearly under property law. 

Bitcoin Community Welcomes Official Legal Recognition

Supporters from Bitcoin groups welcomed the update soon after the confirmation. Freddie New from Bitcoin Policy UK posted on X that the law becoming official is “a huge step forward for Bitcoin in the United Kingdom and for everyone who holds or uses it.” Public reaction showed how long people have pushed for equal treatment of digital units under property rules.

Update – this Bill is now on the way to the King's desk for Royal Consent and will shortly become law. See thread for some extra details👇

A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi

— Freddie New (@freddienew) December 2, 2025

For many years, cases of ownership were dealt with one by one by the judges. According to Crypto UK’s statement on X, courts have already considered cases regarding ownership of properties in digital units in previous rulings. A rule has now been inserted in the law by the parliament regarding this matter. This would help in the proof of control over the digital units as well as in the recovery of stolen funds.

Lawmakers used guidance from the Law Commission of England and Wales published last year. The Commission said digital units can meet property standards if the law provides clear wording instead of relying on scattered court rulings. It also warned that an unclear legal status could make court cases harder, especially when dealing with stolen units or frozen funds.

UK property rules normally place items in two groups: a “thing in possession,” like a car, or a “thing in action,” which covers rights such as enforcing a contract. The new Act confirms that a digital or electronic unit can still count as personal property even if it does not fit neatly into these older categories.

Advocacy groups said the new rule gives more confidence to people holding digital units. CryptoUK says the law brings “clearer rights and protection for consumers and investors.” The group added that people can now own digital units under property rules, recover them in court, and include them in estate or insolvency matters without confusion.

The Royal Assent to the Property (Digital Assets etc) Bill was formally announced in the chamber of the House of Lords at around 2:30pm today, which means it has now become an Act of Parliament.

UK courts have already treated digital assets as property, but that was all through…

— CryptoUK 🇬🇧 (@CryptoUKAssoc) December 2, 2025

Clear Property Rules Strengthen Crypto Market

Industry groups said the new national rules give stronger support for digital unit transfers and products linked to tokenised items. They pointed out that the law creates a clearer path for future financial services using digital formats. CryptoUK said national markets now have a “clear legal basis for ownership and transfer” under the law.

Figures from last year showed growing retail interest. About 12% of UK adults held cryptocurrency, up from 10% in earlier surveys. Officials noted more young users and wider activity across retail groups. Regulators also confirmed plans in April for a new rulebook. It aims to put crypto firms under rules similar to traditional financial companies.