Sean Gould
In December 2025, the UK Parliament passed a deceptively short but profoundly important piece of legislation, the Property (Digital Assets etc) Act 2025.
At first glance, the Act’s text is somewhat brief given it is just two sections. However, its impact on the future of property law, commerce and digital innovation could be enormous. In this blog we explore what the Property (Digital Assets etc) Act 2025 says, why it matters and how it could reshape our understanding of ownership in the digital age.
What the Property (Digital Assets etc) Act 2025 says
The Property (Digital Assets etc) Act 2025’s core provision is contained in Section 1, which states:
“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.”
In plain English, this means that digital assets including cryptocurrencies, NFTs, in‑game items, or other electronic records can now be recognised as property under UK law.
Historically, property law has divided assets into two categories:
1. Tangible items you can physically hold, like a book or a car
2. Intangible rights enforceable through legal action, such as debts or shares
Digital assets often fell awkwardly between these categories. They weren’t physical objects per se but they weren’t exactly intangible either. This ambiguity created uncertainty about whether digital assets could be owned, transferred or protected in the same way as traditional property. The new Act resolves that uncertainty by affirming that digital assets can indeed be objects of property rights, even if they don’t fit neatly into the old categories.
The implications of this clarification are far‑reaching:
- Legal certainty for digital assets: Investors, businesses, and individuals now have a clear legal foundation for treating digital assets as property. This reduces risk and encourages innovation.
- Protection against theft or fraud: If digital assets are recognized as property, then stealing them can be treated as theft under criminal law. Victims gain stronger legal remedies.
- Facilitation of commerce: Contracts, loans, and security interests involving digital assets can now be structured with confidence that the law recognises these assets as property.
- Alignment with global trends: Other jurisdictions, such as Singapore and certain US states, have already moved toward recognising digital assets as property. The UK’s Act ensures it remains competitive in the global digital economy.
The broader context around the Property (Digital Assets etc) Act 2025
The Act comes at a time when digital assets are increasingly central to everyday life.
Cryptocurrencies like Bitcoin and Ethereum have become mainstream investment vehicles. Non‑fungible tokens (NFTs) have created new markets for art, collectibles and gaming. Even beyond finance, digital assets underpin technologies such as decentralised identity systems, smart contracts and tokenised real estate.
Yet legal systems have struggled to keep pace. Courts and regulators often had to improvise, applying old doctrines to new technologies. The Property (Digital Assets etc) Act 2025 represents a deliberate step toward modernising the law to reflect the realities of the digital age.
The Property (Digital Assets etc) Act 2025: a minimalist but powerful law
One striking feature of the Act is its brevity.
Unlike previous legislation that historically can run to hundreds of pages, this Act is just two sections long. Section 2 deals with technicalities. It applies to England, Wales and Northern Ireland and it comes into force immediately and provides the short title.
This minimalist approach is deliberate. By simply clarifying that digital assets can be property, the Property (Digital Assets etc) Act 2025 avoids over‑regulation. It leaves room for courts, regulators and market participants to develop detailed rules and practices over time. In effect, Parliament has drawn a line in the sand marking digital assets as property with the rest to follow.
However, there are potential challenges ahead as recognising digital assets as property is only the beginning. These challenges include:
- Defining ownership: In decentralised systems like blockchain, who “owns” an asset if private keys are lost or stolen?
- Cross‑border disputes: Digital assets often move across jurisdictions so how will UK law interact with foreign laws?
- Regulation vs. innovation: Striking the right balance between protecting consumers and encouraging innovation will be crucial.
- Taxation and inheritance: Property rights bring obligations. How will digital assets be taxed, inherited or divided in divorce proceedings?
These questions will require further legislation, judicial decisions and regulatory guidance but thanks to the Act, the foundation is now in place.
The Property (Digital Assets etc) Act 2025 may be short, but it is a landmark in the evolution of property law. By recognising digital assets as property, the UK has taken a decisive step toward embracing the realities of a digital economy. For businesses, investors and individuals this means greater certainty, stronger protections and new opportunities.
As digital assets continue to grow in importance, this Act will likely be remembered as a turning point, the moment when the law caught up with technology, and ownership in the digital age became real. If this blog has raised any questions, please contact our clerks who will be happy to put you in touch with one of our experienced family law team who will be happy to discuss the implication of the Act in more detail.
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