A New Legal Category for Digital Assets in the UK

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The United Kingdom has established a new legal status for cryptocurrencies. This follows the granting of Royal Assent to the Property (Digital Assets etc.) Act 2025, a move that formally defines digital assets as property under the law.

The legislation passed Parliament smoothly and establishes that digital holdings, including Bitcoin and various stablecoins, constitute a distinct form of property. This classification separates them from traditional physical assets or mere contractual rights.

Susie Ward of Bitcoin Policy UK remarked that this creates a third category of property, offering legal protection for digital holdings. Freddie New from the same group suggested this could be the most significant update to English property law in centuries.

The change follows a 2023 recommendation from the independent Law Commission. The bill itself was presented to the House of Lords in late 2024.

CryptoUK noted that while courts have previously treated crypto as property on a case basis, codifying it into statute provides clarity. This formal recognition is expected to create clearer legal processes for disputes and criminal cases involving digital assets.