UK Crypto Law: Digital Assets Now Legally Property After Royal Assent
UK crypto law receives royal assent, making digital assets legally recognised as personal property for the first time.
UK Grants Crypto Full Property Status
The Property (Digital Assets etc) Act 2025 received royal assent on December 2, 2025. Lord Speaker John McFall announced the approval in the House of Lords. The law creates a third category of personal property under English and Welsh law. Previously, only "things in possession" (physical objects) and "things in action" (contractual rights) existed. Crypto, NFTs (non-fungible tokens), and carbon credits now fall into this new distinct category.
Law Commission Recommendation Now Codified
The legislation implements recommendations from the Law Commission of England and Wales. The Commission published its final report in June 2023 after years of consultation. The bill passed through the House of Lords in May 2025. The House of Commons completed its third reading in November 2025. King Charles granted royal assent on December 2.
Practical Impact on Recovery and Disputes
Courts can now apply established property law principles to digital assets. Owners gain clearer rights to recover crypto stolen through hacks or fraud. Judges can issue freezing orders and trace assets across wallets. Insolvency practitioners can include digital holdings in bankruptcy estates. Executors can treat crypto as inheritable property in wills.
UK Crypto Ownership Continues Rising
The FCA (Financial Conduct Authority) reported in August 2024 that 12% of UK adults own cryptocurrency. This figure represents approximately 7 million people, up from 10% the previous year. The new legal framework arrives as adoption expands. Speculation: clearer property rights may accelerate institutional participation in the UK market.