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- Rizwan AnsariRizwan Ansari
- Dec 03, 2025 11:35 UTC
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U.K. Officially Recognises Crypto as Property in New Digital Asset Law
New U.K. law officially recognizes cryptocurrencies as property, granting stronger legal rights and protection.
Digital assets now form a third property category, covering Bitcoin, stablecoins, NFTs, and more securely.
Clear ownership rights ensure crypto can be recovered after theft, fraud, bankruptcy, or inheritance cases.
The United Kingdom has passed a law officially recognizing cryptocurrencies and other digital assets as personal property under a new law. For years, assets like Bitcoin, stablecoins, and NFTs existed in a legal grey area.
Meanwhile, this new law removes uncertainty and supports the country’s growing digital economy.
U.K. Digital Asset Property Law Offers Clear Ownership Rights
According to the newly approved Property (Digital Assets etc) Act 2025, which received Royal Assent this week, crypto assets such as Bitcoin, stablecoins, and NFTs are now treated as a distinct category of personal property.
This means they can be legally owned, recovered in theft cases, and passed on during inheritance or bankruptcy matters.
Until now, UK property law has only had two types of property:
- Things you can physically hold
- Things you have a legal right to, like debt or contracts
With this updated framework, users finally get clear protection over assets stored in wallets and controlled through private keys.
Clear Rules Strengthen Investor Protection
With the creation of a brand-new third property category designed specifically for digital assets, the U.K. has finally given cryptocurrencies clear legal status.
Crypto groups and members of the Crypto and Digital Assets All-Party Parliamentary Group say this update gives holders stronger protection, greater confidence to invest, and assurance that assets can be recovered if they are stolen or lost through fraud.
Officials believe this clarity will boost innovation and help the U.K. stay competitive in global finance.
UK Aims for Crypto Leadership
With this new act, the UK positions itself as a global leader in crypto regulation. It boosts confidence for the 12% of U.K. adults who already hold crypto and for institutions considering deeper involvement.
Additionally, the Bank of England has opened a consultation planning a regulatory framework for sterling-based stablecoins. This comes as regulators expect digital money to become a common payment method in everyday spending.
Bank of England leaders noted that the U.K. aims to move as fast as the U.S. in digital regulation, ensuring new rules are ready for wide adoption.
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