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The UK Recognizes Crypto Assets as "Property"—The Real Reason Behind It
In December 2025, a piece of legislation in the UK officially granted virtual assets the legal status of "property." But don't misunderstand—this isn't a sign of leniency or friendliness; it's a response driven by necessity after being cornered by reality.
The true trigger was the shocking Money Zhiming Bitcoin laundering case in the UK— involving 61,000 BTC, worth approximately $6 billion, making it the largest recorded crypto laundering scandal in the UK. During the trial, an embarrassing gap was revealed: virtual assets lack a clear legal definition, making it impossible to freeze or confiscate them legally. The judicial system urgently needs a clear answer.
Notably, the UK's approach is quite restrained—it hasn't granted assets like Bitcoin or Ethereum the status of "currency," but only confirmed their attribute as "value carriers." In other words, this is a pragmatic legal recognition aimed at integrating crypto assets into the existing civil law framework, facilitating the handling of practical issues such as crime asset recovery, bankruptcy liquidation, and inheritance.
From this perspective, the UK is proactively adapting to technological realities rather than being forced to indulge. The question is—will other countries follow suit? What does this mean for the long-term development of the entire crypto industry? This could be the beginning of redefining the role of virtual assets within the global financial system.