UK formally recognises cryptocurrency as property under new law [Photo: X]
The UK has made history by formally recognising cryptocurrency as legal property. Lawmakers passed the Property (Digital Assets etc) Act 2025, giving digital assets the same legal standing as traditional property.
This landmark move aims to bring clarity to ownership disputes, enforcement actions, and asset recovery, while signalling the country’s ambition to become a global hub for crypto innovation.
The UK has formally recognised cryptocurrencies as legal property after passing the Property (Digital Assets etc) Act 2025. The law gives crypto assets the same legal standing as tangible property, paving the way for clearer rules in disputes, enforcement, and asset recovery.
Lawmakers hope the move will strengthen legal certainty for crypto investors, businesses, and institutions, while positioning the UK as a global hub for digital asset innovation.
The Property (Digital Assets etc) Act 2025 allows courts and law enforcement to treat digital assets like Bitcoin, Ethereum, and other tokens as legally recognised property. This ensures clearer guidance in cases involving:
Before this law, unclear legal definitions slowed investigations and complicated asset recovery. Now, cryptocurrency holders can expect a streamlined legal process.
The UK’s decision aligns with global trends. Earlier in 2025, India’s Madras High Court ruled that cryptocurrency should be treated as property, providing similar clarity in taxation, compliance, and legal disputes.
“Courts and policymakers globally are recognising the need to formalise digital assets within traditional legal frameworks,” analysts say. The UK move signals that governments increasingly view crypto as an integral part of the modern financial system.
Industry groups welcomed the legislation as long-awaited clarity for crypto holders. Freddie New, policy chief at Bitcoin Policy UK, said: “Becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”
CryptoUK also called the law a milestone, noting it provides long-term certainty for businesses building regulated digital asset products and services.
The law may be the first step toward a full regulatory framework. Policymakers are expected to issue further guidance on:
This move gives businesses and investors a predictable legal environment, encouraging innovation and adoption in the UK’s growing digital asset economy.
