UK recognises digital assets as legal property under law
03 December 2025 UK
Image: Gabriel/stock.adobe.com
The United Kingdom has formally recognised cryptocurrencies and stablecoins as legal property, after the Property (Digital Asset etc) Bill received royal assent from King Charles.
Prior to this Bill, property fit into two categories: things in possession, such as physical objects, and things in action, such as debt.
The law, which passed both houses of Parliament without amendment, creates a third category that enables digital assets such as cryptocurrencies and non-fungible tokens (NFTs) to attract personal property rights.
The Act of Parliament, intends to modernise property law, ending legal uncertainty over whether digital assets meet the definition of property under UK legislation.
Under the new bill, digital assets can be clearly owned, inherited, and recovered in theft cases, included in insolvency and estate proceedings.
The UK government says the legislation aims to provide certainty and protection for people and businesses who possess and transact with such assets, allowing them rights under the law if their personal property is stolen.
It will also decrease litigation courts by taking out the need to determine if something can be property even if it doesn’t meet the traditional categories of personal property.
Furthermore it intends to ensure that the jurisdiction of English, Welsh, and Northern Irish law is an attractive place to deal with and litigate in respect to crypto-assets and other ‘third category’ things.
Commenting on the Act completing its passage through Parliament and receiving royal assent, Zumo’s founder and CEO Nick Jones, remarks: “This is a landmark moment in the modernisation of English property law.”
“It creates a third category that will enable cryptocurrencies and other digital assets to benefit from personal property rights, further legitimising the nascent sector, which should also have a full suite of finalised operating rules in 2026 as the FCA rolls out its roadmap.”
“It’s fantastic to see the UK finally taking advantage of its inherent advantages. We have a deserved and prized reputation when it comes to legal and regulatory matters, and when taken together with the talent and investor appetite permeating through the country, it’s all looking very promising in terms of the UK establishing itself as a crypto hub.
"We should be well placed to explore exciting new avenues of economic growth in the coming years.”
Prior to this Bill, property fit into two categories: things in possession, such as physical objects, and things in action, such as debt.
The law, which passed both houses of Parliament without amendment, creates a third category that enables digital assets such as cryptocurrencies and non-fungible tokens (NFTs) to attract personal property rights.
The Act of Parliament, intends to modernise property law, ending legal uncertainty over whether digital assets meet the definition of property under UK legislation.
Under the new bill, digital assets can be clearly owned, inherited, and recovered in theft cases, included in insolvency and estate proceedings.
The UK government says the legislation aims to provide certainty and protection for people and businesses who possess and transact with such assets, allowing them rights under the law if their personal property is stolen.
It will also decrease litigation courts by taking out the need to determine if something can be property even if it doesn’t meet the traditional categories of personal property.
Furthermore it intends to ensure that the jurisdiction of English, Welsh, and Northern Irish law is an attractive place to deal with and litigate in respect to crypto-assets and other ‘third category’ things.
Commenting on the Act completing its passage through Parliament and receiving royal assent, Zumo’s founder and CEO Nick Jones, remarks: “This is a landmark moment in the modernisation of English property law.”
“It creates a third category that will enable cryptocurrencies and other digital assets to benefit from personal property rights, further legitimising the nascent sector, which should also have a full suite of finalised operating rules in 2026 as the FCA rolls out its roadmap.”
“It’s fantastic to see the UK finally taking advantage of its inherent advantages. We have a deserved and prized reputation when it comes to legal and regulatory matters, and when taken together with the talent and investor appetite permeating through the country, it’s all looking very promising in terms of the UK establishing itself as a crypto hub.
"We should be well placed to explore exciting new avenues of economic growth in the coming years.”
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