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.”
The Law Society is celebrating 200 years of supporting solicitors in England and Wales.
It is the independent professional body that works globally to support and represent solicitors, promoting the highest professional standards, the public interest and the rule of law.