UK Enacts Property Act Granting Digital Assets Statutory Legal Status

The United Kingdom has formally established the legal standing of digital assets, including cryptocurrencies and stablecoins, as property under domestic law with the enactment of the Property (Digital Assets etc) Act 2025. Royal assent was conferred by King Charles on Tuesday, December 2, 2025, finalizing a legislative process that provides a codified statutory basis for these novel assets, moving beyond reliance on evolving common law judgments.

The legislation specifically addresses the ambiguity surrounding digital or electronic "things," confirming they are not excluded from attracting personal property rights merely because they do not fit traditional common law classifications such as "thing in possession" or "thing in action." This Act effectively establishes what is being described as a "third category" of personal property, though the precise scope and application of this new classification will be delineated by UK courts over time.

This legislative action directly responds to a formal recommendation issued in 2024 by the Law Commission of England and Wales, which had identified that the unclear legal status complicated dispute resolution concerning digital assets. The Law Commission noted that these assets often exhibited characteristics aligning with both established property types, creating a legal gap that the new Act seeks to resolve. The move aligns with the UK's broader ambition to position itself as a global leader in responsible digital finance innovation while bolstering consumer safeguards.

Stakeholders within the digital asset community have welcomed the statutory confirmation as a crucial step toward market maturity and investor security. Freddie New, Policy Chief at Bitcoin Policy UK, characterized the enactment as a significant step forward for Bitcoin holders in the United Kingdom. Similarly, the advocacy group CryptoUK stated that the new law provides greater clarity and protection for consumers and investors, suggesting it will foster confidence comparable to that associated with holding traditional property.

The clarity provided by the Act is vital for firms operating within the jurisdiction, as it informs decisions regarding custody, transfer, and the treatment of digital assets on balance sheets. Prior to this formal codification, UK courts had begun establishing property status through case-by-case common law judgments, a process lacking the definitive certainty of primary legislation. The consensus among industry bodies is that this legal certainty is a prerequisite for attracting significant long-term capital investment into the UK's digital asset ecosystem.