- Cryptoassets can be regarded as a form of property and can be subject to long established legal principles.
- Legislation and further fact-specific interpretation will be required as the use of cryptoassets continues developing.
Over the past few years, blockchain technology has become increasingly important to the global economy, with virtual currencies such as Bitcoin, Ethereum, and Ripple slowly infiltrating our lives. As these disruptive technologies have evolved, so has the litigation they generate.
Many questions arise in the context of cryptocurrency litigation: how does legal title to a cryptocurrency pass; can cryptocurrencies be held on trust; what legal recourse or remedies exist if cryptocurrencies are exploited for unlawful purposes, what happens in the event of insolvency? All of these questions revolve primarily around establishing the legal status of cryptocurrencies in order to ascertain whether they could be subject to well-established legal principles.
In November 2019, the UK Jurisdiction Taskforce (UKJT), a government commissioned body comprising members of the legal profession, published a ‘Legal Statement on cryptoassets and smart contracts’.
