The Property (Digital Assets etc) Act 2025 received Royal Assent on 2 December 2025, making England, Wales, and Northern Ireland among the first jurisdictions in the world to confirm in statute that digital assets such as cryptocurrencies and non-fungible tokens (NFTs) can be recognised as personal property. The Act applies to the law of England and Wales and extends to Northern Ireland.

The legislation addresses a fundamental gap in English common law. Traditionally, personal property fell into one of two categories: "things in possession" (physical, tangible objects) and "things in action" (intangible rights enforceable through legal action, such as debts or shares). Digital assets like Bitcoin or Ethereum do not fit neatly into either category. The Act establishes a "third category" of personal property, providing that a thing — including a thing that is digital or electronic in nature — is not prevented from being the object of personal property rights merely because it is neither a thing in possession nor a thing in action.

The practical implications are significant. Owners of digital assets now have enforceable property rights with meaningful legal remedies. If digital assets are stolen, hacked, or misappropriated, owners can take legal action to assert their property rights and seek remedies. Courts can now impose proprietary injunctions — such as freezing orders — to block wrongdoers from dissipating stolen digital assets, just as they would for stolen tangible property.

Digital assets also now clearly form part of a person's estate, meaning executors and administrators can deal with cryptocurrencies and NFTs with greater legal certainty, knowing these assets can be distributed under inheritance law. The UK government has accepted the Law Commission's recommendation to establish a technical expert group, via the UK Jurisdiction Taskforce, to provide ongoing guidance on technical and legal issues.

The Act follows the recommendations of the Law Commission of England and Wales, which published its Final Report on Digital Assets in June 2023 and a supplemental report with a draft Bill in July 2024. Legal experts across the City have welcomed the reform as a critical step in making the UK an attractive jurisdiction for institutional digital asset investment and innovation.