Crypto-Assets and Property Law: Emerging Challenges in International Trade and Investment

The digitalization of finance is transforming at a rapid rate worldwide. Digital assets and in turn cryptocurrencies continue to attract attention in international trade and investment. They are being used in cross border transnational transactions. While today they are not generally considered legal tender, there has been a slow shift to classifying them as a form of asset, and in turn property. While not overly stated, this area of the law is evolving rapidly, and to date, as a digital asset, cryptocurrencies are also emerging as a form of fund or investment. This is because they are being used as a mechanism for payments. This article seeks to determine whether digital assets and cryptocurrencies fall within the classification of property. The current approach to their classification under the law is fragmented. A common theme emerging is how nation states will apply this financial product to existing law and where necessary categorize them as property. This article also examines a selected number of trade agreements to confirm or otherwise the reference and classification of these asset classes. It concludes by examining selected treaties and determining that the classification of a cryptocurrency as they relate to property will be influenced by a number of different factors. The also article confirms that crypto assets are property, and it has been generally left to the judiciary to make this determination. Recently, nation states have begun to confirm the position of the local and national judiciary’s and legislate that these forms of assets are property.