On December 2, 2025, the UK officially recognized cryptocurrencies and digital assets as a separate type of personal property with the new Property (Digital Assets etc) Act 2025. Lord Speaker John McFall announced new legislation in the House of Lords.
This law adds a third type of property in English and Welsh law, in addition to physical objects and contractual rights. The new classification includes cryptocurrencies, NFTs, and carbon credits. The act is the result of suggestions from the Law Commission of England and Wales.
They released their final report in June 2023 after talking to many people. The legislative process started when the bill passed through the House of Lords in May 2025. It then had its third reading in the House of Commons in November and finally received royal assent from King Charles.
This new legal system greatly affects how we get back digital assets and solve problems. Courts can now use existing property laws for digital assets. This helps owners understand their rights better when trying to get back stolen cryptocurrencies from hacks or fraud.
Judges can give orders to freeze assets and find them in different wallets. Insolvency practitioners can now add digital assets to bankruptcy cases, and executors can consider cryptocurrencies as property that can be inherited in wills.
