UNIDROIT is pleased to announce that a proposal for a joint HCCH-UNIDROIT project received the endorsement of the HCCH Council on General Affairs and Policy on 10 March 2023.
This endorsement mandates the Permanent Bureau to examine, jointly with the UNIDROIT Secretariat, the desirability of developing coordinated guidance and the feasibility of a normative framework on the law applicable to cross-border holdings and transfers of digital assets and tokens, covering relevant private law aspects, through the HCCH-UNIDROIT Digital Assets and Tokens Project.
The joint project proposal will be submitted to UNIDROIT’s Governing Council for consideration at its next meeting, from 10 to 12 May 2023. Should it receive its endorsement, the project will begin immediately with an initial phase leading up to March 2024.
Some of the issues to be examined in the first phase of the project include applicable law in the absence of an explicit choice of law by the parties; weaker party protection in transactions relating to digital assets and tokens; connecting factors that would impact on the law applicable to cross-border holdings and transfers of digital assets and tokens; and the law applicable to linked assets.