Bitcoin and other digital assets now have formal legal protection in the United Kingdom after a new law confirmed they can be owned as property. The development gives users and institutions clearer rights and a stable basis for future disputes and asset recovery.
UK Law Formally Recognizes Bitcoin as Property
Bitcoin now has legal protection under UK property law after the Property (Digital Assets etc.) Act 2025 received Royal Assent. The act confirms that digital assets such as bitcoin and stablecoins can be owned as property under a new category within English law. Susie Ward of Bitcoin Policy UK said the reform “finally gives legal protection to the sats you hold,” while policy chief Freddie New described the measure as a major step for everyday users.
For years, UK courts treated digital assets as property through separate judgments. The Law Commission advised in 2023 that a single statutory definition was needed, and this new Act now provides that foundation. The law creates a third form of personal property that sits alongside physical items and contractual rights, giving courts a clear reference when ruling on digital asset disputes.
According to a report by CryptoUK, the statute will help with proving ownership and recovering stolen tokens. The group added that digital assets can now be handled within insolvency or estate cases in the same way as traditional property. This reduces uncertainty for institutions and people who rely on predictable rules in commercial and personal disputes.
Regulatory Steps Advance as Digital Use Grows
The Bank of England is also working on a regulatory regime for sterling stablecoins. Its Deputy Governor Sarah Breeden said the goal is to match the pace of U.S. development in this area as digital payments expand. The consultation aims to prepare the country for wider use of digital money.
At the same time, the government is shaping rules for crypto service providers. Officials said these measures will help build safer markets while supporting innovation. Regulators reported that about 12% of UK adults now own crypto, which shows rising public use and the need for a clear legal base.
Moreover, the new property law aligns with the government’s wider effort to create a clear set of rules as adoption grows. Industry groups said the statute offers stronger certainty for ownership and transfer, and they expect clearer outcomes in disputes as courts begin applying the new rules.
Evans Kelvin
