The Property (Digital Assets etc) Act 2025

The Property (Digital Assets etc) Act 2025 is a UK law that formally recognises certain digital assets as personal property under the law of England and Wales. The Act received Royal Assent on 2 December 2025 and came into force on the same date.

The legislation modernises property law to reflect the increasing use of digital and electronic assets created, stored or transferred using digital technology.

The Property (Digital Assets etc) Act 2025 implements recommendations made by the Law Commission to ensure that property law remains effective and adaptable in a modern digital economy.

Many digital assets did not fit comfortably within existing legal concepts of property, creating uncertainty around ownership, transfer and legal protection.

Under traditional English law, personal property has historically fallen into one of two categories:

• things in possession – tangible, physical items
• things in action – intangible legal rights, such as debts or contractual claims

The Act confirms that digital or electronic assets are not excluded from being recognised as property simply because of their form.

The Property (Digital Assets etc) Act 2025 enables the courts to recognise and develop a third category of personal property capable of accommodating digital assets.

Rather than imposing a fixed statutory definition, the legislation allows the common law to develop flexibly. This approach is intended to ensure that property law can adapt as technology evolves and new forms of digital assets emerge.

The Act does not define digital assets exhaustively. Instead, it applies to assets that are:

• digital or electronic in nature; and
• capable of being owned or controlled

Depending on their characteristics and the surrounding facts, this may include cryptocurrencies, tokens, non-fungible tokens (NFTs) and other digitally native assets.

Whether a particular digital asset falls within the scope of the Act will depend on its legal and factual characteristics.

Recognising digital assets as personal property has several practical legal implications, including:

• greater certainty of ownership and control
• clearer legal remedies in cases involving loss, misuse or interference
• improved clarity where digital assets form part of an estate or insolvency

The Act provides a clearer legal framework for resolving disputes involving digital assets as part of the evolving digital economy.

The Act applies in England and Wales and extends to Northern Ireland. It does not automatically apply in Scotland, where separate legislative developments relating to digital assets are under consideration.

Yes - in principle, the Act is intended to apply to digital assets that are digital or electronic in nature and capable of being owned or controlled. Depending on their characteristics and the surrounding facts, this may include cryptocurrencies and tokens.

The Act does not define specific asset types exhaustively, and the courts will determine how the law applies in individual cases.

By recognising digital assets as personal property, the Act provides greater legal clarity where such assets form part of an individual’s estate. This may be relevant in the context of wills, probate and estate administration, although the treatment of any particular asset will depend on the circumstances.

Recognising digital assets as personal property provides a clearer framework for the courts to address disputes involving loss, interference or misuse. The availability of remedies will depend on the facts of each case and the applicable law.

The Property (Digital Assets etc) Act 2025 is a UK law that recognises certain digital assets as personal property under the law of England and Wales, enabling the courts to treat them within a clear legal framework.

In practical terms, this confirms that digital assets can be treated as property under English law, even where they exist solely in electronic form.

The Act allows the law to adapt as technology evolves, providing greater certainty around ownership, transfer and disputes involving digital or electronic assets.

Erica is a senior associate in the private client team. She advises on a broad spectrum of private client matters including wills, trusts, succession planning for individuals in the UK and abroad, tax advice, and the preparation of Lasting Powers of Attorney and Deputyship applications.