The Law Society of England and Wales welcomes the new Property
(Digital Assets etc) Act that officially recognises for the first
time that digital assets are personal property. The aim is to
modernise the country's financial system, safeguard consumers and
foster innovation.
People that own cryptocurrency and cryptographic tokens that
prove ownership of digital assets such as videos, photos,
websites, music and digital art can now officially consider them
part of their estate.
The law follows the Law Society's recommendations to create more
legal clarity around digital assets. For example, it is now clear
that:
- In cases of theft, hacking or
damage of digital property, people can now take legal action.
- Digital assets can legally be
transferred, sold or left in a will.
- They can now be used as collateral
for loans or mortgages.
- Courts can clearly treat digital
assets under property law.
“The Property (Digital Assets etc) Act removes residual legal
uncertainty around the status of digital assets as property and
enables future development of the common law to respond to
developments in technology and market practice,” said Law Society
CEO, Ian Jeffery.
“By clearly defining digital assets as personal property, the new
law helps courts handle relevant disputes and strengthens legal
protection. It also stands to reinforce trust in digital markets,
drives innovation and positions the UK as a leader in the digital
industry. This important regulation creates a safer environment
for people and businesses that can lead to more growth and more
jobs.”
Notes to editors
- You can find out more about the Property (Digital Assets etc)
Act here. The bill received
Royal Assent on 3 December and is now an Act of Parliament.
- Our Law Society work on digital assets, including the Act, is
available on our website.
