UK Makes Crypto Personal Property Under New Law

• UK passes bill defining crypto as personal property under law.
• The Property (Digital Assets etc) Bill receives royal assent from King Charles.
• Move provides legal clarity for ownership, recovery, and estate handling.

The UK has formally recognized digital assets as personal property under a new law that passed this week. The Property (Digital Assets, etc.) Bill received royal assent from King Charles, completing its journey through Parliament.

Lord Speaker John McFall announced the approval to the House of Lords on Tuesday. The legislation treats cryptocurrencies and stablecoins as property under UK law. Advocates say the move provides stronger protections for digital asset holders across the country.

Freddie New, policy chief at Bitcoin Policy UK, confirmed the bill’s passage on X. “This becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here,” New stated.

Update – this Bill is now on the way to the King’s desk for Royal Consent and will shortly become law. See thread for some extra details👇

A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi

— Freddie New (@freddienew) December 2, 2025

UK codifies crypto property rights into law

Common law in the UK already established that digital assets are property through various court decisions. The bill codifies a 2024 recommendation from the Law Commission of England and Wales. The commission proposed categorizing crypto as a distinct form of personal property.

“UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” CryptoUK stated. “Parliament has now written this principle into law.”

The legislation provides clearer legal standing for proving ownership, recovering stolen assets, and handling crypto in insolvency or estate cases. CryptoUK noted that digital assets now have the same legal protections as other forms of property.

UK law divides personal property into two categories: “things in possession” (tangible items like cars) and “things in action” (intangible rights like contracts). The bill clarifies that digital or electronic items qualify for personal property rights even though they fit neither traditional category.

Law addresses gap in property classification

The Law Commission argued in its 2024 report that digital assets possess qualities of both property types. The unclear fit into existing property rights laws created problems for dispute resolution in courts.

The new law confirms that “a thing that is digital or electronic in nature” falls within personal property rights. This classification removes previous ambiguity about the legal status of crypto holdings.

CryptoUK stated the law delivers “greater clarity and protection for consumers and investors.” Crypto holders now have “the same confidence and certainty they expect with other forms of property.”

The group added that digital assets can be clearly owned, recovered in cases of theft or fraud, and included in insolvency and estate processes. The UK now has a clear legal basis for ownership and transfer of cryptocurrencies.

The legislation arrives as the UK builds its regulatory framework for digital assets. Roughly 12% of UK adults own cryptocurrency according to late 2024 data from the country’s finance authority. This marks an increase from 10% in previous findings.

The UK revealed plans in April for a comprehensive crypto regulatory regime. The framework would bring crypto businesses under similar rules to other finance companies. The government aims to make the country a global hub for digital assets while promoting consumer protections.

FCA launches stablecoin sandbox program

On November 26, 2025, the Financial Conduct Authority (FCA) launched a stablecoin-specific cohort within its Regulatory Sandbox. Applications opened immediately and close on January 18, 2026.

David Geale, the FCA’s executive director for payments and digital assets, announced that a major firm has been accepted into the sandbox. The company is preparing to test a GBP-denominated stablecoin for payments within the next couple of months.

Geale stated the FCA’s goal is creating a “trusted, competitive, and innovative cryptoasset and stablecoin market.” The regulator is “open for business” and welcomes firms conducting crypto activities in the UK. The FCA will host in-person stablecoin policy sprints in March 2026 to explore retail and wholesale use cases.

On November 10, 2025, the Bank of England launched a consultation on its proposed regulatory regime for sterling-denominated systemic stablecoins. The consultation remains open until February 10, 2026.