Digital assets in the conflict of laws: A comparative search for the “ideal rule”

Which law governs assets recorded on the blockchain? This question has long eluded legal academia and practice. Now, states have begun to enact hard and fast rules. This contribution compares legislative provisions of a number of states and a recently adopted text by UNIDROIT. The analysis of these rules shows the emergence of a new gulf in the conflict of laws. This gap must be overcome before the differences are further entrenched and reciprocated by other states which have not yet regulated the question. The means to do so is a uniform text of conflict of laws. An attempt will be made to distill an “ideal” conflicts rule for digital assets from the existing provisions. The proposal made here can serve as a blueprint for national legislation or case law. It is hoped that it will lead to a worldwide consensus in determining the law applicable to digital assets.