The United Kingdom has officially strengthened its legal framework for digital assets with the introduction of the Property (Digital Assets etc.) Act 2025, which received Royal Assent on December 2, 2025. This landmark legislation formally classifies cryptocurrencies—such as Bitcoin, stablecoins, and other tokenized assets—as a unique form of personal property under English law.
A New ‘Third Category’ of Personal Property
The law establishes a distinct third category of personal property specifically designed for digital assets. This classification applies across England, Wales, and Northern Ireland, offering much-needed clarity around the ownership and treatment of cryptocurrencies.
Before the Act, English courts had already acknowledged cryptocurrencies as property through case law, relying on principles of Common Law. Influential groups like the UK Jurisdiction Taskforce supported this view, arguing that digital assets meet the key criteria for property: they are definable, locatable, transferable, and capable of being possessed.
Stronger Legal Rights for Crypto Holders and Creditors
With this new legislation, individuals who own cryptocurrency will have a clearer legal path when pursuing claims related to stolen, lost, or misappropriated digital assets. At the same time, the Act offers increased certainty for creditors and bankruptcy trustees, who can now more confidently include digital assets in estates and insolvency proceedings.
This legal recognition lays essential groundwork for future regulation involving the buying, selling, and taxation of cryptocurrencies. It marks a significant step toward a more structured and secure digital asset ecosystem in the UK.
