According to reports, the UK has enacted a new law that treats virtual currencies as property based on British law. The measure was approved and Royal Assent was granted on 2 December 2025.
The move would replace years of legal uncertainty regarding Bitcoin, stablecoins and other tokenized assets with clear rules about who owns what.
UK grants property rights to virtual currencies
Based on the report, the bill, called the Property (Digital Assets, etc.) Act 2025, would create a new third personal property category for digital assets. This legislation covers England, Wales and Northern Ireland.
It does not create a cryptocurrency that must be accepted in stores, nor does it itself set new rules regarding exchange or taxes. That means it gives the owner a stronger legal claim to use in court.
The court had set the stage years ago.
Even before this law was enacted, judges were already treating virtual currencies as property in some cases. For example, a 2019 High Court case granted unique relief for Bitcoin used in ransom demands.
According to reports, another important ruling was handed down in 2023 when a judge ruled that the stablecoin USDT could attract property rights under English law.
Legal bodies such as the UK Jurisdiction Task Force have long argued that cryptocurrencies meet basic property tests. This means that cryptocurrencies can be defined, discovered, transferred, and held for a limited period of time. The new law merely codifies that view.
Both takes are a bit of a miss. UK courts have already treated cryptocurrencies as property for years. This only codifies and strengthens the insolvency/property related framework in particular. While that is “true” in the sense that it is currently enshrined in legislation, it is not the revolution that CryptoUK is aiming for…
— CryptoReply Guy (@CryptoReplyGuy1) December 2, 2025
Strengthening the rights of holders and courts
Codifying the status of property into law should make it easier for people holding crypto assets to bring claims to recover stolen or lost assets. Creditors and insolvency practitioners will now have a clear basis for listing digital assets in real estate and bankruptcy cases.
The changes will reportedly make it easier than before to obtain freezing orders, seizures and restitution through the UK courts. This is important for victims of hacks, customers of failed platforms, and anyone looking to settle property involving cryptocurrencies.
Laws, not a complete rulebook
This law is legally recognized and does not provide complete rules regarding how to buy, sell, or tax virtual currencies. Regulators still control licensing, anti-money laundering checks and market conduct.
Tax authorities will continue to define how profits are valued. Based on reports from legal commentators, this law serves as a basis. By clarifying ownership at the outset, lawmakers and regulators can later build on more detailed rules.
Featured image from Unsplash, chart from TradingView
