Key Takeaways
- The new law establishes digital assets — including crypto and stablecoins — as a legally recognised form of personal property
- The new act confirms that “a thing that is digital or electronic in nature” can still be the subject of personal property rights.
The United Kingdom has formally rewritten its property rules for the digital age, with King Charles III granting Royal Assent to the Property (Digital Assets etc.) Act 2025 on Tuesday. The new law establishes digital assets — including crypto and stablecoins — as a legally recognised form of personal property, a shift that advocates say will give users stronger protections and clearer rights. The development could set a precedent and influence crypto regulatory framework across the world.
The bill moved through both the House of Lords and House of Commons without amendment, marking one of the most significant legal changes to how the UK treats digital assets. Its passage codifies what courts had already been doing through case-by-case rulings, but it elevates that principle into statute, giving digital holdings firmer footing in matters involving ownership, theft, insolvency, and estate proceedings.
“A third category of property now exists and it finally gives legal protection to the sats you hold,” said Susie Ward, CEO of Bitcoin Policy UK. Her colleague, Chief Policy Officer Freddie New, described the reform as potentially “the biggest change in English property law” since medieval times. He added that the act becoming law is “a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
The new framework stems from a 2023 recommendation by the Law Commission, the independent body responsible for reviewing and modernising UK law. The commission argued that digital assets do not fit neatly into traditional property classifications. UK law distinguishes between a “thing in possession” — physical objects one can hold — and a “thing in action,” such as a contractual right. Digital assets often share characteristics of both while fitting fully into neither. The new act confirms that “a thing that is digital or electronic in nature” can still be the subject of personal property rights.
Industry association CryptoUK said the change brings much-needed clarity. “UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” the group said.
“Parliament has now written this principle into law. This gives digital assets a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases.”
The shift comes against the backdrop of Bank of England advancing its own work on digital money oversight. The central bank recently opened a consultation on regulating sterling-denominated stablecoins, calling it “a significant step” toward preparing for their broader use in payments. As per media reports, Deputy Governor Sarah Breeden had said that the UK aims to implement stablecoin rules “just as quickly as the United States.”