Parliament Gives Digital Assets Real-World Status

On 2 December 2025, Parliament passed into law the Property (Digital Assets etc.) Act 2025.

The Law Commission in 2023 recognised an urgency to clarify property rights for digital assets “etc”, and Parliament has moved remarkably quickly to enhance legal protections and boost investor confidence amid global growth in the digital asset sector and in other emerging technologies.

The Act’s immediate commencement upon assent, and importantly its retroactive effect, accelerates its impact.

For something as exciting and eagerly anticipated as this, the Act itself is remarkably brief. So brief, in fact, that we can cite the entire core provision:

1. Objects of personal property rights

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) a thing in possession, nor

(b) a thing in action.

That is it – apart from a second section that applies the Act to England, Wales and Northern Ireland only and that brings the law into force at once. The Act is deceptively simple. However, there is huge significance to these very few words. You might say that the devil is in the lack of detail.

The Law Commission advised that the law was insufficiently sophisticated to recognise all of the attributes of digital and other emerging “things”, and that we needed to add this provision in order to pave the way for what many are calling the Fourth Industrial Revolution to take shape in the UK. The Act therefore affords the Courts the tool they require to shape the law alongside the development of these emerging technologies and the associated new, emerging and existing property rights and assets.

Why not Scotland?

Simply put, Scotland has a legal system closer to that commonly found in Mainland Europe, derived from Roman law, and property rights and structures are characteristically quite different there. Holyrood is in the process of considering its own Digital Assets (Scotland) Bill, which will have a similar purpose and many similar effects as the Act has in the rest of the UK.

Far more wide reaching than cryptocurrencies …

Most people who hear “digital assets” or “crypto” still think just of Bitcoin and cryptocurrencies. Yes, cryptocurrencies and Bitcoin will come within the scope of this Act; but so will so much more.

No definition of a “digital asset”

There is no definition in the Act of a “Digital Asset” or of the “etc” referred to in the title. That is in accordance with judicial request. Not only is a definition not needed, in fact any definition would be considered to hamper the development of the law. Rather, it is now for the Courts (or in specifically identified cases, for other Acts or Regulations) to develop those concepts and to flex them according to the specific facts before them, including as to the new technologies and “things” that have emerged, are emerging and will continue to emerge over the coming years.

All we are told is that just because the “thing” you have is neither something you can hold nor some sort of contractual or intellectual property right, it is no longer prevented from being treated at law as a form of personal property.

Why does all of this matter?

As a result of this Act, “things” must now be treated at law as personal property. Personal property can be bought and sold, conveyed, assigned, mortgaged, pledged, exchanged for value, insured and placed into an inheritance vehicle such as a trust.

Nor is this Act restricted to “things” of objective value. Some digital assets will have obvious monetary or commercial value. Conceptualising these as property will make valuation simpler to arrange. But many digital assets which have no objective or intrinsic monetary or commercial value, are protected too. As a suggested example, you may now purport to leave in your will your archive of emails or photographs held on a third-party server to another person.

The impact of intervening legislation

The Act applies at large to any “things” or states of affairs in existence on 2nd December 2025.

This means decisions taken prior to that date as to how to treat or transfer or entrust “things” to which the Act applies may need to be revisited to assess the effect of the Act on the purposes of the arrangements you have made.

Specifically, if a “thing” is now presumed to be a transferable piece of property, but the “thing” in your prior arrangements was not intended by you to be transferable or to remain personal to its owner or acquirer, you may need to take advice on the redrafting of your terms of creation and issue.

What next?

The Act does not define the “things” to which it applies, so it is advisable for you to take advice as to whether what you are creating or referring to comes within its scope. More generally, if you are considering the acquisition or disposal of such “things”, or the manner in which they can be charged, pledged or placed into trust, you should consider taking appropriate advice on what in practice is possible and what remains either impossible or untested.

More Legislation to come…

2026 is going to see a lot more legislation and regulations affecting the development of the Digital Economy. Not least will be the provisions that allow the Financial Conduct Authority to regulate a number activities in relation to certain species of digital asset. As this financial regulatory regime unfolds and we approach the date on which it starts to apply in full, we will be providing further commentary and you should check in with our team periodically for further updates and details.

How can Edwin Coe Help?

If you require guidance on navigating the complexities arising from the new legislation on digital assets, Edwin Coe’s specialist Digital Assets & Emerging Technologies team is on hand to assist. Whether you are looking to review existing arrangements, understand the implications for your digital property, or need advice on acquisition, disposal or structuring, our experts can provide tailored support.