The UK has taken a major step toward modernising its financial and legal systems after the Property (Digital Assets etc.) Act 2025 received Royal Assent from King Charles III, formally recognising digital assets as a legally protected form of property. The legislation marks a significant turning point in Britain’s approach to cryptocurrencies such as bitcoin and stablecoins, giving them clear legal status for the first time and strengthening the UK’s bid to become a global hub for digital finance.
The bill, which passed both Houses of Parliament without amendment, confirms that digital assets belong to a newly defined category of property—separate from physical objects and traditional contractual rights. This development creates a legal foundation for courts, law enforcement and businesses to handle disputes, recover stolen crypto and manage digital assets during insolvencies or estate cases with greater clarity.
Crypto advocates hail landmark shift in English property law
Industry groups described the Act as a historic reform. Susie Ward, CEO of Bitcoin Policy UK, said the legislation “finally gives legal protection to the sats you hold,” while Freddie New, the group’s Chief Policy Officer, called the change “possibly the biggest shift in English property law since the Middle Ages.”
The new classification stems from a 2023 recommendation by the Law Commission, which argued that digital assets did not fit comfortably into existing property categories. The bill was introduced to the House of Lords in September 2024 and advanced swiftly through Parliament.
CryptoUK, the nation’s first crypto and blockchain industry association, said UK courts had already been treating crypto as property on a case-by-case basis. Putting that recognition into statute, the group said, provides “a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases.”
Bank of England pushes ahead with stablecoin regulation
The announcement comes as the Bank of England moves forward with plans to regulate sterling-denominated stablecoins. The central bank recently opened a consultation on a new regulatory regime, describing it as “a significant step” in preparing for a future in which digital money is widely used for everyday payments.
Deputy Governor Sarah Breeden said the UK is working to match the pace of U.S. regulatory developments, with new rules expected to become operational “just as quickly as the U.S.” The consultation follows growing calls from businesses and financial watchdogs for a comprehensive framework that supports innovation while protecting consumers and the financial system.
The convergence of legal reform and financial regulation indicates that the UK is accelerating its effort to secure a leading position in global crypto policy, offering greater certainty to investors, companies and the courts at a crucial moment for digital finance.
