Recently, The Law Society has welcomed a major legal development that will affect anyone who owns cryptocurrency, NFTs, online investment tokens, or other digital assets. The new Property (Digital Assets etc.) Act has now formally recognised these assets as personal property under UK law - removing long-standing uncertainty about ownership, inheritance and recovery.
For many, this change brings new opportunities, new responsibilities, and the need to review how digital assets are protected, managed and passed on.
Digital assets are now legally recognised property
Until now, the legal status of cryptocurrencies and other digital tokens sat in a strange grey area - almost in limbo. They were not classed as traditional money, and they were not fully recognised as property either. The new Act changes that position entirely.
What has been decided?
‘Digital assets’, such as Bitcoin, Ethereum, tokenised investments and NFTs can now be owned and legally protected in the same way as other forms of personal property. They can be included within a Will or inherited through intestacy, and can be used as security in commercial transactions or lending arrangements. An important update is that they can also be recovered, traced or contested in court, which was a previous hurdle for digital asset owners. These changes now provide a much stronger and more consistent framework for anyone dealing with digital wealth.
Ian Jeffery, Chief Executive of The Law Society, described the Act as something that ‘removes residual legal uncertainty’ - meaning a significant shift for individuals, investors and businesses across the UK.
What does this now mean for digital currency owners?
1/ Clearer rules for Wills, Probate and Estate planning
Our Wills & Probate Team welcomes the new clarity the Act provides. In recent years, executors have often struggled to access or verify digital wallets, online exchanges and crypto holdings after someone has died. These assets were easy to overlook or lose, particularly if no record had been left behind.
The Act now makes the process far more straightforward. Executors will have a clear legal basis to identify digital holdings, secure them, and include them in the valuation of an estate. They will also be able to distribute these assets in line with the will or intestacy rules. For anyone who holds digital currency or tokens, this should prompt a review of their Will to ensure these assets are properly recorded and that access information is stored securely and responsibly.
2/ Stronger legal grounds for disputes and asset recovery
The new legislation also strengthens the position of clients involved in digital asset disputes - an increasingly common issue handled by our Dispute Resolution team.
Where clients face the loss of digital tokens due to fraud, hacking, misappropriation, or disputes with third parties, the courts now have a clear route for freezing, tracing and recovering those assets. This was far more complex before the Act, as the legal status of cryptocurrencies was less certain. The Act therefore gives individuals and businesses a more reliable basis for pursuing claims, enforcing rights or taking litigation involving digital property.
3/ A more secure framework for businesses and commercial transactions
For clients working with our Commercial and Property Team, the Act brings reassurance and opportunity. Digital assets can now be incorporated more confidently into modern business models, whether as part of commercial contracts, corporate transactions, lending arrangements or tokenisation projects.
Businesses can use digital assets as collateral, include them in company sales or acquisitions, or rely on them in investment arrangements with greater legal certainty. The UK Government aims to position the country as a competitive global centre for digital finance, and this legislation is a key step towards achieving that ambition.
Why you should take action now
As digital assets become a routine part of personal and commercial wealth, failing to plan for them can lead to confusion, financial loss or legal disputes. It is a good idea to review your Wills to ensure that digital assets are included and properly described. You should keep a secure, up-to-date record of how digital assets can be accessed, as this is essential for executors and attorneys. It is also wise to review investment structures and ensure that any digital holdings are legally compliant. Executors or business owners who are already dealing with digital property should seek legal advice early to avoid complications and ensure full protection.
How Coles Miller can help
Our multidisciplinary teams are already working with clients who hold or manage digital assets. We can assist with:
Digital assets may be modern, but the need for strong legal protection remains as important as ever.
Need Help with Probate, Pensions or Estate Administration?
For expert legal advice, contact Coles Miller Partner Anthony Weber, Head of the Wills and Probate Department. He has three decades of legal experience, specialising in wills, probate, living wills, administration of estates, powers of attorney and dealing with the Court of Protection and the Office of the Public Guardian.
Tony is a member of the Law Society’s Private Client Section (formerly the Probate Section).
Tony is also on the steering group of Broadstone Stepping Stones, a Dementia Friends group and a Trustee of the Growing Compassionate Communities charity which is principally focused on supporting vulnerable adults and their carers. He is based at Coles Miller’s Fleetsbridge office.