UK Marks ‘Massive Step Forward’ With New Crypto Property Laws
The Property (Digital Assets, etc.) Act royal assent on December 2, and the UK government officially recognized digital assets such as cryptocurrencies and stablecoins as personal property under national law.
The House of Lords passed this law, and King Charles signed it. It ended years of uncertainty about how courts would handle crypto matters on a case-by-case basis.
It brings the UK in line with the US, which took similar steps earlier in 2025. This makes both countries more attractive as places to do business with .
Freddie New, the head of BTC Policy UK, this was a tremendous step forward for English law, as it gives everyday individuals the identical level of certainty in disputes or inheritance as traditional asset owners.
CryptoUK praised the law for making it easier to recover stolen property and ensuring that bankruptcy proceedings are handled correctly. This strengthens statutory protections that were previously based on common law precedents.
Putting An End To The Legal Gray Area
In the past, UK law divided personal property into “things in possession,” such as tangible property, and “things in action,” such as contractual rights.
The Act adds a third category for digital or electronic “things,” ensuring they are covered by property rights even though they don’t fit any of the previous definitions. Courts can now apply standard law tests more freely to assets such as cryptocurrencies, , and domain names.
This reduces lawsuits over simple status questions, and this is in response to a 2023–2024 Law Commission report that pointed out difficultys with private law in England, Wales, and Northern Ireland, especially when it comes to theft, inheritance, and bankruptcy.
The law applies to , Wales, and Northern Ireland, but the details are left to the courts to adapt as technology evolves.
Praise From The Industry And Regulatory Momentum
BTC Policy UK and other groups that have long called for clarity view it as a game-changer for consumer confidence.
Companies like and Ripple view opportunities for growth in the UK, which runs counter to earlier warnings from OMFIF’s Digital Monetary Institute that the UK might fall behind the EU and US without changes. The UK-US Taskforce for Markets of the Future, which begined in September, shows that the two countries are working together on digital assets.
The government is taking tighter steps to build public trust, such as a possible ban on political donations in cryptocurrency under a new Elections Bill. This balanced plan puts the in a strong position to lead regulated crypto innovation as rules change worldwide.
