The United Kingdom has made a significant move by officially recognizing cryptocurrencies as property through the newly passed Property (Digital Assets etc) Act 2025. This landmark legislation, which received Royal Assent this week, aims to clarify ownership rights for holders of digital tokens and bolster consumer protection within the digital finance sector.
Under this new law, the UK introduces a third legal category specifically for digital assets, distinguishing them from tangible objects and enforceable rights. This development reflects the increasing role of blockchain technology in the economy and provides clearer guidelines for legal proceedings related to fraud recovery, inheritance, and insolvency.
The legislation was unanimously approved by both Houses of Parliament and received the final endorsement from King Charles III. It was developed based on recommendations from the Law Commission, which highlighted the necessity for such a statutory change back in 2023. According to CryptoUK, a prominent trade organization, this law enhances legal certainty regarding the treatment of cryptocurrencies, which courts have already begun to recognize as property.
Advocacy groups have praised the Act as a transformative update to property law, signaling a change not seen since the early days of English legal history. Legal experts assert that the explicit acknowledgment of cryptocurrencies as property will attract investment and enhance London”s standing as a global hub for digital finance. With clearer legal definitions, innovation in tokenized markets is expected to flourish.
The scope of the Act extends to England, Wales, and Northern Ireland, providing flexibility for future interpretations as new technologies emerge. A statement from Parliament noted that property law has traditionally adapted through judicial decisions, suggesting that overly rigid definitions could impede progress in the evolving landscape of digital assets.
This reform is part of a broader initiative within the UK to regulate the cryptocurrency market, which includes ongoing consultations by the Bank of England regarding stablecoin oversight to prepare the payments sector for an increasingly digital economy.
