As the Minister explained, for centuries the law has recognised two traditional categories of personal property: things in possession, referring to tangible objects such as a bar of gold, and things in action, such as debts or contractual rights enforceable only through legal process. However, the rise of the digital economy has introduced a growing range of assets that defy those historical classifications.
From crypto tokens and digital files to in-game items and carbon credits, individuals and businesses now interact with a third category of asset. This Bill introduces that third category of personal property by confirming what the courts have been increasingly willing to suggest: that a thing is not precluded from being treated as property merely because it does not fit the traditional mould. It does so in a deliberately modest way, allowing the common law to evolve with technological change, rather than attempting to predict or prescribe it.