Digital assets and cryptoassets

What are digital assets?

Digital assets are not currently defined in English law, but they include things like social media accounts (such as Facebook, Instagram, TikTok or Twitter), photographs stored in the cloud and on a computer, cryptocurrency (such as Bitcoin), digital music libraries (iTunes), loyalty points, gaming accounts and characters, bank accounts, medical records and non fungible tokens.

Digital assets are increasing in value, and this is only likely to continue over future years with the introduction of decentralised finance being considered by the Bank of England. In 2022 they were estimated to be worth £25 billion in the UK. HMRC has recognised the value of the sector and now has an extensive Cryptoassets Manual, which recognises crypto tokens as property and liable to taxation. UK Cryptoasset businesses have been required to register with the Financial Conduct Authority to prevent them being used for money laundering since 10 January 2021.

The US and Canada have introduced legislation to allow fiduciaries access to digital assets, which helpfully define these, which may be indicative.

On 28 June 2023, the Law Commission published itsfinal report following its consultation

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