The Property (Digital Assets etc) Act 2025 – what it may mean for you
The Act came into force on 2 December 2025, and this article explains the purpose of the Act and why it may be relevant to you.
The purpose of the Act
The main effect of the Act is to officially recognise digital assets as personal property under English law. Digital assets include cryptocurrencies (e.g. Bitcoin, Ethereum), NFTs (Non-Fungible Tokens), digital photos, and accounts such as emails and domain names.
It was deemed necessary to address digital assets as it was considered that these classes of assets did not fit comfortably within the existing categories of personal property.
To resolve this, the Act has introduced a new category of personal property to encompass digital assets, which will set alongst the two historical categories: ‘things in possession’ (tangible assets such as a home, car, cash, savings) and ‘things in action’ (intangible, contractual rights, such as debts).
The key effects of the Act?
The Act provides clarity and practical benefits, including confirming that:
- Digital assets can be protected from theft or fraud because traditional remedies such as freezing and tracing orders can be more readily used to reclaim stolen digital assets.
- Digital assets are now explicitly part of a person’s estate for inheritance and probate purposes and are also disclosable assets in a divorce or the dissolution of a civil partnership.
- In a commercial context, digital assets may be used as collateral for loans.
- During an insolvency, digital assets may will be treated as assets available to creditors.
Future-proofing
The Act provides clarity regarding an evolving property class and is intentionally concise and doesn’t attempt to define an exhaustive list of digital assets. This is to ensure there is sufficient flexibility for the courts to adapt as new digital assets emerge.
If you wish to find out more, including how you can ensure your Will takes account of this new category of personal property, please do contact us at info@theburnsidepartnership.com.