In brief
- Digital assets have been formally recognised as personal property in UK law.
- Industry insiders welcomed clarity for ownership, recovery and innovation.
- The new bill arrives alongside other crypto‑related regulatory changes, including platform reporting requirements.
The UK has passed a bill formally recognising digital assets as property on Tuesday in a bid to provide greater legal clarity for courts dealing with cases related to crypto.
The Property (Digital Assets etc) Bill confirms that digital assets have the same legal status as traditional forms of property, a shift designed to protect ownership rights, inheritance claims and recovery efforts.
The bill will provide improved legal protections and clarity for Brits holding crypto, the proportion of which ranges from estimates of 12% of the population by the Financial Conduct Authority to 24% according to a Gemini survey.
Etay Katz, head of digital assets at law firm Ashurst, described the law as “a welcome and timely statutory recognition of the fundamental property quality in cryptoassets.”
“It delivers a decisive message to the world that the UK is open for business as a digital assets hub and will no doubt help position London as the global hub for digital finance more broadly,” he told Decrypt.
A “clearer legal footing” for crypto
The bill creates statutory backing for digital assets’ property status, previously established only through piecemeal court decisions under common law. Introduced in September 2024, it implements recommendations from the Law Commission of England and Wales and applies in England, Wales and Northern Ireland. By defining “a thing of a digital or electronic nature” as a form of personal property, it offers a clearer framework for legal cases, including those involving theft, inheritance and bankruptcy.
Lobbying group Crypto UK said in a statement that the change will give everyday holders the same confidence and certainty they expect with other forms of property. “This gives digital assets a much clearer legal footing, especially for proving ownership or recovering tokens after fraud,” the group said.
The organisation added that the law creates stronger foundations for long‑term innovation across tokenisation and digital markets. “By providing a clear legal basis for ownership and transfer, the UK is now better positioned to support the growth of new financial products, tokenized real‑world assets, and more secure digital markets,” it said.
However, the legislation leaves some aspects open for courts to determine. The UK Parliament’s website notes that the bill deliberately avoids defining exactly which digital assets fall under the new category, allowing judges to adapt interpretations as technology evolves. This mirrors the traditional development of personal property law through case‑by‑case common law rulings.
“This is preferable to setting out firm rules in legislation, which would be less able to respond flexibly to new circumstances and technological developments,” it said, explaining that, “Personal property law has always been developed by the courts through our common law rather than in legislation.”
UK crypto regulation
Beyond the property bill, the UK is advancing several other crypto‑related regulatory changes. The government is weighing a ban on cryptocurrency donations to political parties, a proposal interpreted as targeting Reform UK, which began accepting them earlier this year.
Reform has cultivated strong ties with the crypto sector, with senior figures attending and speaking at industry events. Over the last few months, Reform leader Nigel Farage was paid $40,000 to speak at a Blockworks Digital Asset Summit, $27,000 to speak at Zebu Live, and $10,000 for an appearance at Bitcoin 2025, according to online records of his financial interests.
Additional reporting requirements will also take effect from January 1, according to the 2025 Budget. UK‑registered trading platforms must collect users’ personal details, tax identification numbers and crypto transaction histories as part of a plan to raise an extra $417 million in tax revenue by 2030.
Experts warn the measures could raise compliance costs, potentially pushing some traders toward non‑compliant offshore platforms.
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Source: https://decrypt.co/350747/uk-passes-digital-assets-bill-recognizing-crypto-as-property
