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UK passes a law creating a third category of property for digital assets
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Reform formally recognizes bitcoin and stablecoins as legally protectable property
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Change gives clearer footing for ownership disputes and asset recovery
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Industry groups say it is the biggest shift in English property law in centuries
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UK also pushing ahead with stablecoin regulation under the Bank of England
UK Establishes a New Legal Category for Digital Assets
The UK has passed a landmark law officially recognizing crypto as a distinct form of property. The Property Act 2025 received Royal Assent this week, confirming that assets like bitcoin and stablecoins can be legally owned in a way that is separate from both physical goods and contractual rights.
Industry groups called the move historic, saying it provides long overdue certainty for how courts should handle crypto disputes. Advocates say the new category will help with proving ownership, recovering stolen crypto, and resolving cases of insolvency or inheritance.
A Reform Years in the Making
The rule follows recommendations from the Law Commission in 2023 and passed Parliament without amendments. Local industry body CryptoUK noted that courts were already treating crypto as property through individual rulings, but codifying that treatment in law gives a far stronger and clearer framework.
UK Moves Toward Clear Stablecoin Rules
The law comes as the Bank of England works on a regulatory regime for sterling stablecoins. Officials say they aim to match the U.S. in regulatory speed as the use of digital money grows in everyday payments.
