UK Classifies Digital Assets as Personal Property

The United Kingdom has enacted a landmark law classifying cryptocurrencies, stablecoins, and other digital assets as a distinct form of personal property, providing long-sought legal clarity for owners and courts. The Property (Digital Assets etc.) Act 2025 received Royal Assent from King Charles III on Tuesday, marking its official passage after approval by both houses of Parliament without amendments.

The legislation establishes a third category of personal property under English law, separate from traditional classifications of tangible items, known as things in possession, and intangible rights, such as debts or contracts, referred to as things in action. Digital assets, including Bitcoin, nonfungible tokens, and stablecoins, now fall into this new group, confirming their status even though they exist electronically and do not fit neatly into older definitions. This change codifies principles that UK courts had previously applied on a case-by-case basis through common law rulings, resolving ambiguities that complicated ownership disputes, asset recovery, and proceedings involving theft, fraud, insolvency, or estates.

The act stems from recommendations by the Law Commission...