A New Law on Recognizing Cryptocurrencies as Property Came into Force in the UK

• The UK has passed the Property (Digital Assets, etc) Act.
• According to the law, cryptocurrencies, NFTs, and other digital assets have become the third category of property.
• The law gives the judicial system something to work with when passing sentences in crypto-related cases.

The UK has published the Property (Digital Assets etc) Act 2025, which officially recognizes crypto assets as property, introducing a third category of property — digital assets, including cryptocurrencies and NFTs.

The document clearly states that such assets may be subject to personal property rights:

This allows the UK courts to operate with a clear legal status of crypto assets, which was previously determined only in individual cases.

The law came into force on December 2 and applies to England, Wales, and Northern Ireland. Its key purpose is to modernize legislation and adapt it to the realities of the digital economy.

CryptoUK, a specialist organization, called the adoption of the act an “important step” that increases user confidence and strengthens the legal status of digital assets.

Its experts stressed that the country has a chance to form a “global standard” for the regulation of digital assets and stablecoins:

The association added that regulatory processes now require “greater pace, sharper focus, and far more engagement.”

New legal status of digital assets:

• Facilitates litigation over fraud, loss of access and ownership disputes
• Provides a legal basis for cryptoasset inheritance
• Strengthens the position of exchanges, custodians and institutional players
• Makes the UK more competitive amid active regulation in the US and EU

The adoption of the law is part of a large-scale transformation of the UK’s approach to digital asset regulation, as the Financial Conduct Authority (FCA) announced in September that it would grant crypto companies exemptions from traditional financial rules, recognizing that the current mechanisms are not suitable for the digital asset market. At the same time, the regulator plans to tighten cyber resilience requirements after the high-profile Bybit hack.

Later, the UK and the US announced the creation of a joint transatlantic working group on digital asset regulation. It is to prepare recommendations by March 2026.

Already in October, the British government introduced the position of a “digital markets champion” responsible for the introduction of blockchain into the financial infrastructure, the development of government bond tokenization, and the modernization of wholesale markets.

In November, the Bank of England announced that the future regulatory regime for stablecoins may include limits on their storage: £20,000 for individuals and £10 million for businesses.