A key milestone for digital assets was reached in December as the Property (Digital Assets etc) Act received Royal Assent.
The new law confirms that certain digital assets, including cryptocurrency tokens and non-fungible tokens (NFTs), can now be formally recognised as personal property in England, Wales and Northern Ireland. In Scotland, similar recognition is expected soon, with the Digital Assets (Scotland) Bill currently moving through Parliament.
This legislation positions the UK among the first jurisdictions globally to give digital assets the same legal status as more traditional forms of property.
For businesses and individuals holding Bitcoin and other tokens, the Act provides welcome legal clarity.
Why this matters
By confirming that digital assets can be treated as personal property, the law strengthens protection and opens up new opportunities.
- In cases of theft, giving owners stronger legal grounds to recover their assets
- In inheritance planning, allowing cryptocurrencies to be passed down more easily
- During insolvency, where creditors may be able to recover digital assets more reliably
This clarity is especially valuable for businesses that hold digital assets as part of their balance sheet or transactional activity.
The law removes a layer of uncertainty and provides a firmer foundation for businesses to plan, protect and manage their digital holdings.
