The United Kingdom has enacted the Property (Digital Assets etc.) Act 2025, which formally recognizes crypto assets as a new category of property.
This landmark legislation introduces a third type of personal property: digital assets. This classification encompasses cryptocurrencies, non-fungible tokens (NFTs), and other tokenized digital items.
The Act clarifies that digital items can qualify for property rights even if they do not fit within traditional legal categories such as “things in possession” or “things in action.”
This development provides courts with a clear framework for handling disputes involving crypto assets, a matter that was previously determined on a case-by-case basis.
The law took effect on December 2 and applies to England, Wales, and Northern Ireland. Its overarching goal is to modernize property legislation to accommodate the digital economy.
The industry association CryptoUK described the Act as “an important step” that will enhance user confidence and strengthen the legal foundation of digital assets within the country.
Experts from CryptoUK added that the UK has a significant opportunity to establish a global benchmark for crypto and stablecoin regulation. However, they cautioned that policymakers will need to engage more deeply with industry participants to achieve this objective.
Key Impacts of the Digital Asset Property Category
- •Litigation becomes easier in cases of fraud, lost access, and ownership disputes.
- •Crypto assets gain a clear legal basis for inheritance procedures.
- •Exchanges, custodians, and institutions receive stronger legal backing.
- •The UK positions itself competitively amid accelerating regulation in the US and EU.
The new law is part of a broader transformation of the UK’s digital asset strategy.
In September, the Financial Conduct Authority (FCA) announced that it would grant certain exemptions from traditional financial rules to crypto firms, acknowledging that existing frameworks do not fully apply to digital assets. Concurrently, the regulator plans to strengthen cyber-resilience standards following the high-profile Bybit incident.
Subsequently, the UK and the US announced the formation of a joint working group on digital asset regulation, which is expected to publish its recommendations by March 2026.
In October, the government introduced the role of Digital Markets Champion. This position is tasked with advancing blockchain integration in financial infrastructure, tokenizing government bonds, and modernizing wholesale markets.
In November, the Bank of England revealed that upcoming stablecoin rules might include holding limits: £20,000 for individuals and £10 million for businesses. This indicates a move towards a more structured approach to digital asset oversight.