The UK has become one of the first countries in the world to formally recognise digital assets, including cryptocurrencies and non-fungible tokens (NFTs), as personal property, offering millions of owners stronger legal protection. The Property (Digital Assets etc) Act, which recently received Royal Assent, clarifies that digital assets are to be treated like traditional property, ensuring they can be inherited, recovered in bankruptcy, and safeguarded against theft or fraud.
The legislation establishes a new category of personal property alongside traditional “things in possession” like gold or cars, and “things in action” such as debts and shares, reflecting the unique characteristics of digital assets. This provides much-needed clarity for courts, businesses, and individuals, simplifying disputes and enhancing protections in an era of rising cryptocurrency fraud.
Minister for Courts and Legal Services, Sarah Sackman KC MP, said the new law positions the UK at the forefront of fintech innovation and legal services. “By clarifying the status of digital assets, we remove uncertainty, simplify disputes, and cement the UK’s position as the centre for fintech innovation. This government doesn’t adapt to change but leads it,” she said, highlighting the broader goal of the Plan for Change to strengthen growth in the £42.6 billion legal services sector.
Beyond protecting owners, the legislation is expected to attract fintech companies—ranging from ambitious start-ups to global enterprises—to England, Wales, and Northern Ireland, boosting investment and reinforcing the UK’s reputation as a global hub for legal innovation. It also ensures businesses can operate with legal certainty regarding the status of their digital assets, aligning them with traditional goods like jewellery, and reducing costly disputes.
With a highly skilled workforce of 384,000 and a thriving legal services industry, the UK now offers both domestic and international actors a modern legal framework capable of supporting the evolving digital economy while safeguarding individual and corporate interests.
