UK Makes History: Crypto Officially Recognized as New Property Class

The United Kingdom has officially codified digital assets, including cryptocurrencies like Bitcoin, stablecoins, and NFTs, into its legal framework as a distinct form of property. On Tuesday, the Property (Digital Assets etc.) Act 2025 successfully received Royal Assent from King Charles III, marking its completion of passage through Parliament. This landmark legislation introduces a third, legally recognized category of property specifically for digital assets, a significant modernization of English property law.

This new classification differentiates digital assets from traditional legal categories such as “things in possession” (physical objects) and “things in action” (contractual rights). The act passed both houses of Parliament without amendment, underscoring its broad acceptance and necessity in the digital era. Susie Ward, CEO of Bitcoin Policy UK, emphasized the act's immediate impact, stating it “finally gives legal protection to the sats you hold,” while her group’s Chief Policy Officer, Freddie New, hailed it as potentially “the biggest change in English property law since the Middle Ages.”

The reform's origins trace back to a 2023 recommendation from the Law Commission, which identified that digital assets did not fit adequately into existing legal structures. While UK courts had previously treated crypto as property through case-by-case rulings, the new statute provides a clear and consistent legal foundation. Trade association CryptoUK highlighted that codifying this principle offers