The UK’s regulation of crypto advanced significantly this week after the Property (Digital Assets etc.) Act 2025 received Royal Assent, formally defining digital assets as a third category of property under English law. The measure, which passed Parliament without amendment, codifies that assets such as bitcoin, stablecoins, and other tokenized instruments can be subject to property rights distinct from physical goods or contractual claims.
UK Establishes Dedicated Property Category for Digital Assets
Industry groups said the change provides more certainty in an area where courts had been ruling on a case-by-case basis. CryptoUK, the country’s main digital asset trade association, said the act gives courts a firmer foundation for determining ownership, recovering stolen assets, and navigating insolvency or estate proceedings. Advocacy groups also noted the broader legal significance. Susie Ward, CEO of Bitcoin Policy UK, said the reform finally gives formal protection to digital asset holdings and reflects the long-term direction of financial infrastructure modernization.
The move follows recommendations from the Law Commission, which in 2023 urged Parliament to create a dedicated property category to keep pace with technological developments. The bill’s rapid progress from introduction in September 2024 to approval this week highlights growing political alignment around digital asset governance.
Institutional and Regulatory Implications
The recognition of digital assets as property aligns the UK more closely with other major financial jurisdictions that have sought to anchor digital asset rights in statute. Market participants expect the new framework to support institutional adoption by reducing legal uncertainty around custody arrangements, collateralization, and settlement processes. Legal specialists also view the reform as a foundational step for future rules governing tokenization and digital market infrastructure.
The shift comes as policymakers focus on the broader regulatory perimeter. The Bank of England recently began consulting on a proposed framework for sterling-denominated stablecoins, calling the effort a key step toward integrating digital money into retail and wholesale payment systems. Deputy Governor Sarah Breeden said the UK aims to match the pace of US regulatory developments and bring stablecoin rules online within a similar timeline.
Combined with the new property designation, these initiatives position the UK to compete in the global regulatory landscape as financial institutions evaluate long-term exposure to digital asset markets. The reforms also signal that the government views digital assets as a durable component of the country’s financial ecosystem rather than a temporary innovation cycle.