The Property Act received Royal Assent in UK, formally classifying cryptocurrencies, stablecoins and non-fungible tokens (NFTs) as a distinct category of personal property.
The Act creates a statutory “third category” of personal property designed for digital assets that do not fit neatly into traditional legal buckets. English property law historically split personal property into “things in possession” and “things in action”: the former are tangible items one can physically hold; the latter are intangible legal rights enforceable through legal action. The new category expressly accommodates assets that combine transferability, scarcity and cryptographic control.
The statute follows a 2024 recommendation from the Law Commission of England and Wales calling for clear classification to reduce litigation and legal uncertainty.
Practical effects, limits and wider implications
For individuals and institutions the Act makes several outcomes clearer: digital assets can be owned, included in wills, and treated as assets in divorce and insolvency proceedings; ownership claims and recovery remedies gain firmer statutory footing. Industry groups such as Bitcoin Policy UK and CryptoUK described the change as a “massive step forward,” noting the greater legal certainty this creates for investors and service providers.
The law, however, does not remove technical or enforcement challenges: the pseudonymous and cross-border nature of blockchains will continue to complicate tracing and freezing of illicitly moved assets, and operational recovery often requires coordination across platforms and jurisdictions.
By removing a key legal obstacle, the Act lowers a barrier to institutional use and may facilitate tokenization of real-world assets and clearer treatment of digital holdings in corporate restructuring. Courts will now apply statutory definitions when resolving disputes that previously turned on piecemeal case law. The UK move also aligns with a broader international trend toward formal recognition of digital assets as property, reinforcing a convergence in legal treatment of crypto assets.
The Property (Digital Assets etc) Act replaces judicial patchwork with statutory clarity, giving holders clearer routes to assert ownership and pursue remedies.
