The United Kingdom has taken a historic step in modernising property law to include digital assets in its framework.

On 2 December 2025, the Property (Digital Assets etc.) Act 2025 received Royal Assent, officially classifying “digital assets” including cryptocurrencies, stablecoins, and NFTs, as a form of personal property under English law. This reform ends years of ambiguity and positions the UK as a global leader in digital finance.  

Why was it necessary for Digital Assets to be treated this way??

Traditionally, UK law divided personal property into two categories:

  • things in possession: tangible physical items like cars or jewellery.
  • things in action: intangible rights enforceable through legal action, such as debts or shares.

Digital assets had in the past never fit neatly into either category. Courts had been treating crypto as property through case law, but this was inconsistent and left gaps in ownership rights, recovery, and insolvency treatment. The Law Commission’s 2024 report recommended creating a third category to reflect the unique nature of digital assets. Parliament has now codified that recommendation.

What does the Act do?

The Act confirms that a “thing that is digital or electronic in nature” can attract property rights even if it does not fall into traditional categories. This means:

  • clear ownership rights for crypto holders.
  • recovery of stolen or misappropriated assets under established property remedies.
  • inclusion of digital assets in estate planning and insolvency proceedings.
  • ability to use digital assets as security for loans or collateral arrangements.


In short, digital assets now enjoy the same legal protections as physical property, giving users confidence that their holdings are not in a legal grey zone.

Practical implications of the changes to digital assets

For individuals, this means crypto can be inherited like any other asset and reclaimed if stolen. For businesses, it provides certainty in structuring transactions, custody arrangements, and tokenisation projects. Courts now have a statutory basis to resolve disputes, reducing litigation costs and speeding up recovery processes.

The law also strengthens the UK’s ambition to become a digital finance hub. With around 12% of UK adults holding cryptocurrency, clarity on property rights is a critical step toward mainstream adoption and institutional confidence.

What’s next?

While the Act establishes the principle, it leaves room for courts to develop the boundaries of this “third category” over time. This flexibility ensures the law can adapt to emerging technologies without constant legislative overhaul. Meanwhile, complementary regulations, such as those on stablecoins and crypto service providers, are expected to follow, creating a comprehensive framework for digital assets.

Bottom Line

The Act is more than a legal technicality, it is a game-changer. By granting digital assets full property status, the UK has delivered long-awaited clarity, enhanced investor protection, and laid the foundation for innovation in tokenised finance. For crypto holders and businesses alike, the message is clear: your digital wealth now has real-world legal standing.

Farringford Legal has deep experience in this field, advising on compliance, structuring, and documentation/regulatory needs in this fast-evolving space. Whether you are a crypto investor, an exchange, or a business exploring tokenisation, Farringford Legal can help you navigate the legal framework with confidence. From drafting robust legal agreements to advising on regulatory implications, our team combines technical knowledge with practical solutions.

As the UK positions itself as a global hub for digital assets, having the right legal partner is critical. Farringford Legal is ready to guide you through regulatory obligations, risk management, and strategic opportunities, ensuring your business involving digital assets is further protected.