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UK Enacts Law Recognizing Digital Assets as Personal Property

The statute creates a third property category to give courts clearer grounds for ownership, recovery and insolvency cases.

Overview

  • The Property (Digital Assets etc) Act 2025 received Royal Assent on December 2, with Lord Speaker John McFall announcing the approval in the House of Lords.
  • The law applies across England, Wales and Northern Ireland and confirms that digital or electronic items can attract personal property rights.
  • It establishes a third category beyond things in possession and things in action, supporting inheritance treatment, insolvency processes and theft recovery.
  • Parliament followed Law Commission recommendations, and industry groups such as CryptoUK and Bitcoin Policy UK welcomed the clarity for consumers and institutions.
  • The reform sits within a wider policy push that includes platform reporting requirements from January 1 per the 2025 Budget, a Bank of England consultation on a sterling stablecoin regime, and government consideration of banning crypto donations to political parties.