UK Enacts Landmark Law Recognising Cryptocurrency and Digital Assets as Legal Property
Property (Digital Assets etc.) Act receives Royal Assent, giving crypto and tokens the same legal status as cash or real estate
The United Kingdom has formally enshrined in law that cryptocurrencies and other digital assets — including tokens and stablecoins — are to be considered a distinct category of personal property.
The Property (Digital Assets etc.) Act received Royal Assent on December 3, 2025, ending longstanding uncertainty over the legal status of crypto under UK law.
The new law establishes a third category of personal property — alongside physical objects and contract-based rights — specifically for digital or electronic assets.
That means individuals and businesses holding crypto now enjoy clear legal protections over ownership, transfer, recovery and inheritance, much like holders of traditional assets such as cash, real estate or shares.
Until now, courts had recognised some digital-asset ownership cases under common law rulings, but that recognition was informal and lacked the consistency of statutory legislation.
The new law brings uniform legal clarity across England, Wales, Northern Ireland — and potentially Scotland pending separate review.
Supporters in the legal and financial sectors praised the move as a milestone that will strengthen investor confidence, reduce litigation ambiguity and help the UK position itself as a global hub for digital finance.
They said clearer rights will aid in recovering assets lost to theft or fraud, resolving inheritance and divorce disputes involving crypto, and building token-based financial services with guaranteed protections.
The legislation comes amid broader efforts by UK regulators and policymakers to develop comprehensive frameworks for crypto trading, custody and consumer protection.
Observers say the legal recognition of crypto property rights is likely to encourage innovation and capital inflows — but also raises expectations that firms and investors comply with evolving regulations under forthcoming financial-sector rules.
For crypto holders in the UK, the law signals that their holdings are no longer legal grey-area “things in action” or intangible contracts.
From now on, their assets carry the same property rights, enforceable in courts and protected under law.
The Property (Digital Assets etc.) Act received Royal Assent on December 3, 2025, ending longstanding uncertainty over the legal status of crypto under UK law.
The new law establishes a third category of personal property — alongside physical objects and contract-based rights — specifically for digital or electronic assets.
That means individuals and businesses holding crypto now enjoy clear legal protections over ownership, transfer, recovery and inheritance, much like holders of traditional assets such as cash, real estate or shares.
Until now, courts had recognised some digital-asset ownership cases under common law rulings, but that recognition was informal and lacked the consistency of statutory legislation.
The new law brings uniform legal clarity across England, Wales, Northern Ireland — and potentially Scotland pending separate review.
Supporters in the legal and financial sectors praised the move as a milestone that will strengthen investor confidence, reduce litigation ambiguity and help the UK position itself as a global hub for digital finance.
They said clearer rights will aid in recovering assets lost to theft or fraud, resolving inheritance and divorce disputes involving crypto, and building token-based financial services with guaranteed protections.
The legislation comes amid broader efforts by UK regulators and policymakers to develop comprehensive frameworks for crypto trading, custody and consumer protection.
Observers say the legal recognition of crypto property rights is likely to encourage innovation and capital inflows — but also raises expectations that firms and investors comply with evolving regulations under forthcoming financial-sector rules.
For crypto holders in the UK, the law signals that their holdings are no longer legal grey-area “things in action” or intangible contracts.
From now on, their assets carry the same property rights, enforceable in courts and protected under law.
