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Digital Assets Bill

17/12/2025 November 2025 marked a significant milestone for the UK's digital economy, the Property (Digital Assets etc.) Bill (often referred to more simply as the "Digital Assets Bill") passed its final parliamentary stage and now awaits Royal Assent, bringing the country a step closer to formalising the legal status of digital assets.
At its heart, this Bill addresses a profound legal gap: how the law treats digital assets such as cryptocurrencies, NFTs, and other kinds of tokenised property. Until now, courts and businesses have grappled with the fact that many digital assets do not neatly fall into traditional legal categories of "property."
Under English (and Welsh) common law, personal property has historically been divided into two categories: things in possession (physical, tangible objects), and things in action (intangible rights, like debts or contractual claims).
Digital assets often don't cleanly map onto either of those. The Bill introduces a third category of personal property: one that can legally accommodate digital things. It confirms that certain digital assets (e.g., crypto-tokens) can be recognised as personal property, even if they are not physical or traditional legal claims.
Crucially, the Bill does not rigidly define which digital assets qualify. Instead, it empowers courts to decide, on a case-by-case basis, whether a particular digital thing can have property rights attached. By clarifying property rights, the Bill strengthens protections for people holding digital assets, for example, in cases of theft, dispute, or insolvency. The Bill will apply in England, Wales, and Northern Ireland when it becomes law and, once Royal Assent is granted, is intended to come into force immediately, because it is not creating arbitrary new burdens; it is formalising and clarifying rights that courts have already been developing.
By giving digital assets clearer legal status, the Bill reduces ambiguity. That helps individuals, start-ups, and established businesses who deal with crypto or other tokenised assets to operate with more confidence. As one MP put it, this is about applying "centuries of legal wisdom to the frontiers of the digital economy." Supporters argue this move strengthens the UK's position as a hub for fintech, blockchain, and other emerging technologies. As noted in parliamentary debates, the Bill "reinforces our position as a global jurisdiction of choice for legal innovation."
With property status clarified, disputes over digital assets (e.g., in fraud or insolvency) may be resolved more fairly, and more cheaply. The Bill could help reduce litigation costs, because parties won't need to litigate whether something is property in the first place. Rather than prescribing a fixed definition of digital assets, the Bill leaves room for evolution. The courts, rather than Parliament, will shape how this new category develops. That means the law can adapt to future innovations.
Of course, this new legal recognition raises some important questions and challenges. Because the Bill does not define precisely which digital assets qualify, there may be litigation early on as courts test the boundaries. Not all tokens will necessarily be treated equally. Digital assets are global by nature. Different countries are moving at different speeds on regulation and legal recognition. Will the UK's approach be compatible with other major jurisdictions?
Even with legal recognition, practical challenges remain: recovering stolen crypto, tracing ownership, and enforcing judgments on digital assets can still be technically difficult. Legal status is one piece of the puzzle. Financial regulators (like the FCA), tax authorities (HMRC), and others will still play a big role in how digital assets are used, held, taxed, and regulated.
The Bill now awaits the monarch's formal sign-off to become law. Once it becomes an Act, courts will begin to interpret and apply this "third category" of property, and their early decisions will be very influential. Businesses (especially fintech and crypto) will be watching closely, ready to leverage the legal clarity to launch services, products, or structures that were previously riskier. This Bill builds on, and will interact with, other crypto- and blockchain-related regulatory work in the UK, such as proposals for regulating exchanges, custody providers, and tokenised funds.
The passing of the Digital Assets Bill is more than a symbolic move for the UK; it represents a foundational legal step. By formally recognising that digital things can be property, Parliament is not just reacting to the rise of crypto and NFTs: it's positioning the UK as a forward-looking jurisdiction that embraces digital innovation while preserving legal certainty.
It is a "small clause with big consequences"; legal clarity that could unlock investment, protect individuals, and help the UK lead in the next chapter of the digital economy.

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