The United Kingdom has moved a step closer to giving crypto holders the same legal footing as owners of traditional assets after Parliament approved a new law that formally treats cryptocurrencies and stablecoins as property. Key Takeaways: The UK has formally recognized cryptocurrencies and stablecoins as legal property through a new Act of Parliament. The law confirms digital assets can be owned, inherited, and recovered. Industry groups say the change strengthens investor protection and supports Britain’s push to become a digital-finance hub. The Property (Digital Assets etc) Bill was granted royal assent this week, confirming it as law, after being announced in the House of Lords by John McFall. With the approval of King Charles, digital assets will now be protected under property law rather than being left in a gray area shaped mostly by court rulings. Industry Hails UK Crypto Property Law as ‘Massive Step Forward’ Industry groups welcomed the decision as a long-awaited breakthrough. Bitcoin Policy UK called the law “a massive step forward” for Bitcoin and other digital assets, while trade body CryptoUK said Parliament has now written into statute what judges had already been applying through individual cases. Until now, common law had often treated digital tokens as property, but only through scattered judgments. The new law follows advice issued in 2024 by the Law Commission of England and Wales, which urged lawmakers to classify crypto as a distinct form of personal property to avoid uncertainty around ownership disputes. Under UK law, personal property traditionally falls into two categories: physical objects, known as “things in possession,” and contractual rights, referred to as “things in action.” The problem, legal experts noted, was that crypto did not easily fit into either group. BREAKING: UK JUST OFFICIALLY RECOGNIZED #BITCOIN AND CRYPTO AS PROPERTY UNDER LAW NATION STATE GAME THEORY PLAYING OUT pic.twitter.com/6wfAoFL5CJ — The Bitcoin Historian (@pete_rizzo_) December 2, 2025 The new legislation resolves that ambiguity by confirming that “a thing that is digital or electronic in nature” can still be treated as personal property, even if it does not meet older definitions. CryptoUK said this change makes it easier for courts to settle disagreements involving stolen funds, inheritance cases or company failures involving digital holdings. “This gives digital assets a much clearer legal footing, especially for proving ownership or recovering tokens after fraud,” the group said in a statement. The government also views the change as part of a broader effort to make Britain a hub for digital finance. Data from the financial regulator shows around 12% of UK adults hold some form of cryptocurrency, a figure that has risen steadily in recent years. UK Weighs Ban on Crypto Donations As reported, the UK government is considering a ban on cryptocurrency donations to political parties, a move that could directly affect Reform UK, which recently became the first party in the country to accept digital assets. The proposal is under review as part of the upcoming Elections Bill, according to people familiar with internal discussions, though officials have yet to formally confirm the plan. The debate follows Reform UK’s push to present itself as Britain’s most crypto-friendly party under the leadership of Nigel Farage. Furthermore, the UK government has moved a step closer to overhauling how decentralized finance activity is taxed, backing a new framework that would spare users from triggering capital gains each time they deposit tokens into lending protocols or liquidity pools. The post UK Formally Recognizes Crypto as Property with New Digital Assets Law appeared first on Cryptonews .
