When is a Cryptocurrency Transfer International in Distributed Ledger Technology-Based Systems?

Abstract

Cryptocurrencies, introduced in 2009 with the first cryptocurrency, Bitcoin, have grown significantly in recent years and attracted attention globally. One of the main characteristics of cryptocurrencies and their key innovation is that they are underpinned by distributed ledger technology (DLT) or blockchain as a type of DLT. This technology enables cryptocurrencies to be transferred, stored or traded electronically within DLT-based systems in a peer-to-peer manner among (pseudonymous) system participants across the world without the involvement of the usual central trusted authorities or intermediaries such as banks. This raises the question of if, and how, one should ascertain internationality for cryptocurrency transfers taking place within truly global systems underpinned by DLT for private international law purposes. This article aims to raise awareness of and address the question of internationality in the context of cryptocurrency transfers in DLT-based systems. It considers internationality in private international law, potential factors that might be relevant in ascertaining internationality for cryptocurrency transfers through a comparison to that for electronic funds transfers (EFTs), and the approaches of the International Institute for the Unification of Private Law (UNIDROIT) and the Hague Conference for Private International Law (HCCH) on internationality in their current projects concerning digital assets and digital economy respectively.