A new era for digital property rights

For more than a decade, digital assets such as cryptocurrencies, NFTs, and other electronic records, have outpaced traditional legal concepts, leaving courts, businesses, and individuals to navigate uncertainty around ownership, control, and remedies.

The Property (Digital Assets etc) Act 2025 finally fills that gap, marking a major modernisation of English property law and providing long‑awaited statutory clarity on the status of digital assets.

The Act came into force immediately upon receiving Royal Assent on 2 December 2025, signalling the UK’s commitment to aligning its legal framework with contemporary technology and commerce.

The evolution of personal property

Historically, English law recognised only two types of personal property: things in possession (tangible, physical items) and things in action (rights enforceable through legal action).

Digital assets such as cryptocurrencies, NFTs, and other electronic records do not neatly fit into either category. Courts have been forced to rely on analogy and judicial creativity, leading to inconsistent outcomes.

The Act resolves this by stating that a thing, including something digital or electronic, is not prevented from being the object of personal property rights merely because it is neither in possession nor in action.

This removes the conceptual barrier that previously prevented digital assets from being treated as property and creates space for a third category of personal property tailored to digital value.

The Act does not attempt to define digital assets exhaustively. Instead, it adopts a flexible, principle‑based approach that allows courts to develop the law as technology evolves.

Implementation of The Property (Digital Assets etc) Act 2025

The introduction of this Act has significant practical consequences. Digital assets can be confidently treated as property, strengthening rights to own, transfer, protect, and recover them. Claimants have firmer grounds to seek proprietary remedies including:

• Injunctions;
• Freezing orders; and
• Tracing claims (which can make it easier to recover misappropriated crypto assets).

The Act enhances commercial certainty for fintech businesses, custodians, and blockchain‑based enterprises by providing a clearer legal foundation for structuring transactions and managing risk.

Digital assets can also be more readily included in insolvency estates and distributed to heirs, which is increasingly relevant as individuals hold more value in digital form.

However, the Act does not define “digital asset” in detail, regulate crypto markets or exchanges, address taxation, create rules for smart contracts, or establish a framework for taking security over digital assets. These areas are likely to be the subject of future legislation or regulatory guidance.

The future of digital property rights

Although concise, the Act lays the groundwork for broader developments in digital asset law. Key areas to watch include:

• Custody and control of private keys (a ‘password’ used to manage crypto funds);
• How lenders can take collateral over digital assets;
• The interaction between smart contracts and property rights;
• Cross‑border issues in decentralised systems; and
• Potential future regulation of digital asset markets and custodians.

As courts begin applying the Act in real‑world disputes, case law will play a crucial role in shaping the practical boundaries of digital property rights.

The Property (Digital Assets etc) Act 2025 brings much‑needed clarity to the legal status of digital assets, strengthens the tools available for their protection and recovery, and enhances the UK’s position as a leading jurisdiction for digital‑economy innovation.

Further developments are expected, but the Act provides a solid foundation for navigating digital property rights with greater confidence.

How Hamlins can help

Our Commercial and Tech team support clients across multiple industries, sharing commercial, intellectual property, regulatory, and data focused expertise .

If you would like a conversation about how we can help you, please get in touch.