5 Cryptocurrencies and the Conflict of Laws

Subject(s):

Electronic money — Currency

This chapter examines the range of challenges raised by virtual cryptocurrencies for the conflict of laws in England and other jurisdictions in the European Union, along with possible ways of addressing those challenges. It first provides an overview of virtual currencies and cryptocurrencies before discussing the regulatory challenges presented by cryptocurrencies as a form of ‘disruptive technology’ for the conflict of laws. It then considers the law applicable to the relationships between participants within a cryptocurrency system, with reference to Bitcoin and Ripple, and the question of whether virtual cryptocurrencies are capable of constituting ‘money'’ with equivalence to national (fiat) currencies. The chapter concludes with an analysis of how virtual cryptocurrencies should be characterised as property in the conflict of laws, focusing on the law applicable to assignments of claims under/outside the Rome I Regulation.