What is it about?
Digital assets such as Bitcoin are increasingly used as collateral to secure finance transactions. In this paper, we investigate which law would - and should - govern these transactions. More specifically, we examine which law should govern the validity and effects of security rights in digital assets. We look both at digital assets that are held 'directly' on the blockchain, and at those held through a crypto-custodian such as a crypto-exchange or wallet provider.
Featured Image
Photo by Kanchanara on Unsplash
Why is it important?
Digital assets are used ever more frequently. However, because of their immaterial nature and innovative technology, their use still is hindered by a significant degree of legal uncertainty. This paper aims to bring some clarity and proposes clear rules for the use of this category of financial instruments, the importance of which is highly likely to increase ever more.
Perspectives
Much attention is always given to the regulatory issues of crypto assets: how to prevent money laundering, how to safeguard financial stability, etc. But in practice, one of the most important issues is: which law determines how I can validly transfer my crypto-assets, and how can I validly use them as collateral for a finance transaction. This paper answers those complex but important questions.
Matthias Haentjens
Universiteit Leiden
Read the Original
This page is a summary of: The Law Governing Secured Transactions in Digital Assets, November 2023, Brill,
DOI: 10.1163/9789004514850_018.
You can read the full text:
Contributors
The following have contributed to this page
