UK Classifies Crypto as Property with New Law

The UK officially recognized crypto assets as personal property after the Property (Digital Assets, etc.) Bill received royal assent from King Charles on December 2, 2025.

This legislation provides legal clarity and protection for crypto holders, setting the UK as a leader in digital asset regulation.

Market and Industry Embrace Legal Clarity for Digital Assets

The Property (Digital Assets etc) Act, which received royal assent from King Charles, now recognizes cryptocurrencies and stablecoins as a new form of personal property. Lord Speaker John McFall announced this development from the House of Lords, citing the 2024 recommendation by the Law Commission of England and Wales. This law provides digital assets with a clearer legal definition, allowing them to be treated as objects of personal property rights, distinct from traditional physical or debt property.

With this reclassification, cryptocurrencies like Bitcoin, Ethereum, and various tokenized assets fall under a specific legal category. The new framework aims to support proof of ownership, recovery of stolen assets, and management during insolvency, encouraging greater institutional and investor participation. CryptoUK, an industry advocacy group, emphasized the law’s role in enhancing consumer protection and fostering market growth.

“The bill becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.” — Freddie New, Policy Chief at Bitcoin Policy UK source

Historical Context, Price Data, and Expert Analysis

Did you know? UK courts had acknowledged digital assets as property before this law through judicial decisions, but without a statutory definition. This law establishes a third category for digital property, systematizing rights that were previously granted on a case-by-case basis.

Bitcoin (BTC) is trading at $93,067.90 with a market capitalization of 1,857,357,136,464.75. It dominates 58.98% of the market as of December 3, 2025, CoinMarketCap reports. The 24-hour volume saw a 16.82% change, driving BTC’s price by 7.03% in the past day—though it’s down by 13.52% over 30 days.

Potential financial and regulatory impacts are substantial, according to the Coincu research team. Experts predict that these changes will enhance market confidence, reduce ambiguities, and foster the development of new digital financial products in the UK. Community sentiment remains optimistic, anticipating further growth and innovation in the sector.