UK law recognises cryptocurrency as personal property
If you hold Bitcoin, an NFT or similar tokens, UK law now treats certain digital assets as personal property. The Property (Digital Assets etc) Act 2025 received Royal Assent on 2 December 2025, with the legislation published as 2025 c.29 on Legislation.gov.uk and confirmed by the Law Commission. It applies across England, Wales and Northern Ireland.
Here’s the simple idea. For centuries we’ve had two main types of personal property in this jurisdiction: “things in possession” you can hold (like a car), and “things in action” you enforce as a right (like a debt). The new Act confirms that certain digital assets can still attract property rights even if they don’t fit either box. Lawyers often call this a “third category”, and the Law Commission urged Parliament to make that position clear.
What this means for you if something is stolen: when a token is recognised as property, courts can use familiar property tools to help. Judges may grant orders to stop transfers and to identify where assets have moved, which can make it easier to trace, freeze and, in some cases, recover what’s yours. The Ministry of Justice factsheet sets out these practical benefits for victims of fraud.
What this means for life events: your tokens can be counted properly in estates and insolvencies. If you pass away, crypto that meets the legal test can be part of your will; if a business goes bust, qualifying digital assets can be available to creditors. This doesn’t change anyone’s tax bill by itself, but it clarifies that the assets can be treated like other personal property in these processes.
Scope matters. The Act extends to England, Wales and Northern Ireland. The Scottish Government has been consulting separately on how Scots law should treat crypto‑tokens, so outcomes there may differ. If you live in Scotland, keep an eye on separate updates. This territorial point comes directly from the Ministry of Justice’s own factsheet.
Not every digital thing becomes property. A crypto‑token can be “rivalrous” - if you transfer it, you don’t keep a copy - which helps it fit the property idea. A Word document you send to a friend is not like that. The Act deliberately leaves room for courts to decide which digital assets qualify, with the Law Commission expecting crypto‑tokens to be the main example.
How we got here - a quick classroom timeline. Judges began recognising crypto as capable of being property in High Court cases over recent years. In June 2023, the Law Commission recommended legislation to confirm that status. On 11 September 2024, ministers introduced the Property (Digital Assets etc) Bill to Parliament. It became law on 2 December 2025. Dates and steps are recorded by the Ministry of Justice, the Law Commission and Legislation.gov.uk.
A practical checklist for owners. First, make a simple record of what you hold and where: exchanges, wallets and any custody providers. Second, plan for access: store recovery phrases safely and tell your executor or trusted person how to find instructions if you’re not around. Third, keep transaction histories - they help prove control and value when it matters. This isn’t legal advice; it’s good housekeeping so the law can work for you.
For students and teachers, this is a live example of how law adapts to technology. Ask: what makes something “property”? Why do courts care about features like transfer without duplication? And who should decide which digital assets qualify - Parliament setting tight definitions, or judges applying tests case by case? Use the Act to open a classroom debate about how rules evolve.
Why government says this matters. Ministers argue that clearer rules cut disputes and give the UK’s legal sector and fintech firms a reason to base work here. The Ministry of Justice described the UK as one of the first countries to recognise these assets in law when the Bill was introduced, and officials have repeated that the change supports growth in legal services.
Just as important is what the Act does not do. It is about property rights, not regulating crypto trading or protecting you from price swings. In the UK, the Financial Conduct Authority mainly oversees anti‑money laundering controls for crypto firms; most tokens themselves remain outside full financial regulation. Always check the firm you use is registered and understand that scams still exist.
What to watch next. Because the Act leaves detail to the courts, early judgments will shape the boundaries - which tokens qualify, how remedies are applied, and what counts as sufficient control. The Law Commission expected this gradual, case‑driven development, so we’ll all be learning from real disputes over the coming months and years.