Property (Digital Assets etc) Bill [HL]

The Property (Digital Assets etc.) Bill [HL] would mean digital assets, such as cryptocurrencies, could be recognised as a type of personal property under UK law.

The bill was introduced in the House of Lords on 11 September 2024 alongside explanatory notes. An impact assessment was produced by the Ministry of Justice in October 2024. The House of Lords Library published a briefing on the bill.

The bill was first read in the House of Lords on 11 September 2024 as HL bill 31 of the parliamentary session and passed third reading on 8 May 2025. It had its first reading in the House of Commons on 12 May as Bill 237 of the 2024-25 parliamentary session, and its second reading is expected to take place on 16 July 2025.

The Property (Digital Assets etc) Bill is a short bill with one main clause, and it would extend to the whole of the UK, including Northern Ireland, after agreement from the Northern Ireland Assembly in March 2025.

The bill aims to modernise UK property law by formally recognising a third category of personal property. The two existing categories of personal property under UK law are:

• ‘things in possession’ (like a physical object)
• ‘things in action’ (like a debt)

The third category might be applied to digital assets – like cryptocurrencies, non-fungible tokens (NFTs) and others – and allow them to become personal property, even though they don't fit the traditional categories above.

What are digital assets?

Digital assets, also known as ‘cryptoassets’, are things that exist in digital form and can be owned, transferred or traded using technology.

They include items like cryptocurrencies (such as Bitcoin), tokens and other digital representations of value or rights.

These assets are protected using cryptography, which is a way of keeping information secure. Most digital assets use systems like blockchain or distributed ledger technology to work.

Some digital assets are used to make payments, like electronic money (see Table 1 for a comparison). Others are used to access services or take part in projects. Some digital assets are designed to keep a stable value, while others go up and down in value and so can be used for investment or speculation. There are also digital tokens that give people the right to vote on decisions in digital systems.

Are there existing rules for digital assets?

The UK has already introduced some rules for digital assets, and more are being developed.

Since 2023, firms that promote cryptoassets must follow rules set by the Financial Conduct Authority (FCA), including clear risk warnings and a 24-hour cooling-off period for new customers.

Anti-money laundering rules also apply, and firms must register with the FCA.

In 2025, the government published draft legislation to bring more cryptoasset activities – like trading platforms and custody services (see Box 1 for further information) – under full financial regulation.

Additionally, the FCA is consulting on new rules for stablecoins (a form of digital asset that can be used to make payments) and how firms should safely hold digital assets. Other consultations are looking at how much money these firms should have in reserve to keep safe and avoid insolvency issues, and whether to allow certain crypto investment products for the public.

The Bank of England is also testing ideas for a central bank digital currency, known as the ‘digital pound’.

Are digital assets a property?

In law, “property” means the rights a person or organisation has over something, not just physical objects. Traditionally, personal property has been divided into two types: things you can physically hold (like a book), and things you can claim in court (such as money someone owes you).

Digital assets, like cryptocurrencies, don’t fit neatly into either of the existing types of personal property. They can’t be touched, and they often don’t involve legal promises between people. This has caused uncertainty about whether they count as property.

Many legal experts, including the Law Commission, have said that digital assets should be recognised as a new, third type of personal property.

The aim is to help courts, businesses, and individuals understand their rights and responsibilities when dealing with digital assets.

What does the bill do?

The Property (Digital Assets etc) Bill is a short bill with one main clause.

The first clause establishes that something can be treated as personal property even if it is not a physical object or a legal claim; this includes digital things.

The bill does not try to define exactly what digital assets are. Instead, it lets judges and lawyers decide how to apply the rule in different situations.

The bill applies across the UK, including Northern Ireland, after agreement from the Northern Ireland Assembly in March 2025.