UK enacts property law recognizing digital assets as personal property

The change follows royal assent announced in the House of Lords by Lord Speaker John McFall, moving a principle developed in case law onto a clear legislative footing.

Advocates said codification removes ambiguity that has complicated disputes and recoveries. Bitcoin Policy UK policy lead Freddie New called the law “a massive step forward,” arguing it gives people who hold or use crypto in Britain “a much clearer legal footing.” CryptoUK noted that courts had already recognized digital assets as property through individual judgments; Parliament has now written the principle into law.

The Act addresses a long‑standing gap in English and Welsh property doctrine, which historically split personal property into a “thing in possession” (tangible) and a “thing in action” (a right enforceable by legal action). It clarifies that digital or electronic things are not excluded from property rights simply because they are neither of those classical categories. That approach reflects a 2024 Law Commission recommendation that certain digital assets exhibit attributes of both and should be protected accordingly.

What changes in practice

• Ownership and title: Clearer grounds for establishing and transferring title to tokens.
• Recovery and remedies: Stronger basis to seek freezing, tracing and recovery of stolen or misdirected assets.
• Insolvency and estates: Guidance for office‑holders to recognize and administer digital assets alongside other property.
• Commercial use: Firmer footing for tokenized real‑world assets, secured transactions and structured products.

Industry groups said the statutory recognition should also support market development while reinforcing consumer protection. CryptoUK argued the framework provides “greater clarity and protection for consumers and investors,” with a clear legal basis for ownership and transfer across use cases.

The shift lands as the UK builds a broader regulatory perimeter for crypto businesses. In April, the government outlined plans to bring service providers under rules similar to other financial firms, aiming to balance a “global hub” ambition with safeguards. The Financial Conduct Authority has estimated that about 12% of UK adults now hold some form of cryptoasset, underscoring the need for consistent treatment in private‑law disputes.

With the Act in force, courts will have a statutory anchor for disputes involving digital assets, and market participants gain a clearer map for structuring transactions, custody and recoveries.

As GNcrypto wrote previously, the UK also introduced the Cyber Security and Resilience Bill to extend NIS‑style obligations to a wider set of tech and managed‑service providers, add turnover‑based fines, and empower the technology secretary to direct preventive measures where national‑security risks arise. The package includes safeguards against AI misuse (notably to prevent child sexual abuse material) and aims to align with EU standards. Government figures cited average losses of about £190,000 per serious attack and roughly £14.7 billion a year economy‑wide, reinforcing the push for stronger reporting, response and oversight across core service providers.