UK Passes Landmark Law Recognizing Cryptocurrency as Personal Property

London just rewired the legal system for digital assets—and the implications are massive.

In a move that's sending shockwaves through both the crypto and traditional finance sectors, the United Kingdom has formally passed legislation that classifies cryptocurrency as personal property. This isn't just regulatory lip service; it's a foundational shift that grants digital assets like Bitcoin and Ethereum a clear legal identity they've been fighting for.

From Digital Code to Defensible Asset

Forget the murky legal gray area. This law cuts through the ambiguity, placing crypto holdings on a similar legal footing as physical possessions or financial instruments. It means clearer rights for recovery in cases of theft or fraud, and a stronger hand for holders in insolvency proceedings. Suddenly, that wallet full of tokens isn't just data—it's a defendable estate.

The Ripple Effect for Finance

The City of London is watching closely. This legal clarity bypasses one of institutional capital's biggest hesitations: uncertainty. Expect custodial services, lending platforms, and investment vehicles to get a major shot in the arm, as the legal risks are now quantifiable. It's the kind of framework that turns cautious dips into confident allocations.

Of course, the old guard in finance will likely scoff, calling it a desperate attempt to legitimize 'internet money'—right before their compliance teams quietly start drafting new crypto policy papers.

This is more than a law; it's a signal. The UK isn't just acknowledging crypto's existence; it's building a legal runway for its future. For a sector hungry for legitimacy, this isn't just progress—it's a precedent.

TLDR

• The UK passed the Property (Digital Assets etc) Bill into law after receiving royal assent from King Charles
• The law officially recognizes cryptocurrencies and stablecoins as personal property under UK law
• Digital assets can now be clearly owned, inherited, recovered in theft cases, and included in insolvency proceedings
• The law clarifies that digital or electronic things qualify as personal property even if they don’t fit traditional definitions
• Around 12% of UK adults own cryptocurrency according to the country’s financial regulator

The United Kingdom has passed legislation that formally recognizes cryptocurrencies and stablecoins as personal property. The Property (Digital Assets etc) Bill received royal assent from King Charles this week, making it official law.

BREAKING: UK JUST OFFICIALLY RECOGNIZED #BITCOIN AND crypto AS PROPERTY UNDER LAW

NATION STATE GAME THEORY PLAYING OUTpic.twitter.com/6wfAoFL5CJ

— The Bitcoin Historian (@pete_rizzo_) December 2, 2025

Lord Speaker John McFall announced the bill’s passage in the House of Lords on Tuesday. The law ends legal uncertainty about whether digital assets qualify as property under UK law.

Before this law, UK courts treated digital assets as property through individual case decisions. Common law established this principle over time. However, the new bill codifies these rulings into formal statute.

The Law Commission of England and Wales recommended this change in 2024. The commission argued that digital assets didn’t fit neatly into existing property categories. This created problems for dispute resolution in courts.

How UK Property Law Works

UK law divides personal property into two categories. “Things in possession” are physical items like cars or furniture. “Things in action” are intangible rights like contracts or debts.

Digital assets posed a problem because they shared characteristics of both categories. The new law solves this by confirming that digital or electronic things can be personal property. They don’t need to fit the old definitions.

CryptoUK, an industry advocacy group, explained that the law makes ownership clearer. Digital assets can now be recovered after theft or fraud. They can be included in bankruptcy cases and estate proceedings.

Bitcoin Policy UK called the passage “a massive step forward” for bitcoin holders. Policy chief Freddie New said it benefits everyone who holds and uses crypto in the UK.

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

What This Means for Crypto Holders

The law gives crypto holders the same legal protections as owners of traditional assets. They can prove ownership in court more easily. Stolen assets can be recovered through legal channels.

The legislation also helps with inheritance cases. Digital assets can now be clearly transferred to heirs. They can be included in wills and estate planning.

CryptoUK said the change provides greater clarity and protection for consumers and investors. The group believes the UK is now better positioned to support tokenized real-world assets. It could also help develop more secure digital markets.

Data from the UK financial regulator shows about 12% of UK adults own cryptocurrency. This represents an increase from 10% in previous findings.

The UK government announced plans for a broader crypto regulatory regime in April. The framework WOULD bring crypto businesses under similar rules as traditional finance companies. The government aims to make the country a global hub for crypto while protecting consumers.

The new property law forms part of this larger regulatory effort. It provides a legal foundation for ownership and transfer of digital assets in the country.