King Charles III, on Tuesday, appended the Royal Assent to the Property Act (Digital Assets etc.) 2025, giving legal recognition to crypto and other digital assets as personal property under UK law. The move transforms how courts, businesses and individuals treat digital holdings and could reshape the country’s stance in the global crypto economy.
The Act codifies a recommendation by the Law Commission of England and Wales that digital-only assets deserve their own property classification. Until now, digital tokens like bitcoin or NFTs existed in a legal grey area. They were neither “things in possession”, physical items such as gold or cars, nor “things in action”, such as a debt or contractual right.
By creating a third category of personal property, the law ends decades of uncertainty. Under the Act, digital or electronic assets can attract property rights even if they don’t fit traditional property definitions. That means crypto wallets, tokens and other digital holdings are now granted the same legal protections as tangible property.
This statutory clarity carries immediate practical implications. Owners of cryptocurrencies and NFTs will gain stronger rights in cases of theft, fraud, or insolvency. Courts will have a clearer mandate to freeze or seize crypto holdings, include them in estate distribution, or address disputes in divorce or liquidation proceedings.
Property Act: A Strategic Move for the Crypto Economy
Legal experts and crypto enthusiasts hail the legislation, describing it as a “coming of age” moment for digital assets in the UK. For industry participants and institutional investors, the law offers a firmer foundation to build products, manage risk and scale operations.
Regulators and lawmakers appear to view the reform as part of a broader plan. Alongside emerging rules on stablecoins and custody, the Act aims to cement the UK’s ambition to become a global hub for blockchain and crypto innovation.
Until now, jurisdictions around the world have wrestled with inconsistent treatments of digital assets, often relying on disparate court rulings. The new law promises consistent, predictable treatment under a unified legal framework.
However, the legislation avoids overly rigid definitions. It does not specify which tokens or digital instruments automatically qualify, leaving that to courts and future case law. That flexibility is intentional: it allows the legal system to adapt as technology advances, without requiring repeated legislation for each new development.
Legal experts warn some questions remain. For example, how the law will apply to complex decentralised protocols, smart contracts, or tokenised real-world assets is yet to be tested. Nonetheless, most agree that the UK has taken a critical first step toward aligning property law with the realities of modern digital markets.
In passing the law, Britain has given crypto and other digital assets a home in the common law. For holders of digital wallets, it means their assets are no longer intangible code. They are real, legal property. For the global crypto community, it’s a signal that the UK is serious about embracing the digital economy.