Second Preparatory Meeting of the HCCH-UNIDROIT Digital Assets and Tokens Joint Project

From 2 to 4 October 2023, the Second Preparatory Meeting of the HCCH-UNIDROIT Joint Project on Law Applicable to Cross-Border Holdings and Transfers of Digital Assets and Tokens was held in hybrid format at the seat of UNIDROIT in Rome.

Following the first kick-off Preparatory Meeting held on 12 June 2023 at the premises of the HCCH in the Hague, the participants designated by the two Secretariats in this meeting explored in greater detail the feasibility of joint work on the applicable law in cross-border holdings and transfers of digital assets and tokens.

The instrument to be potentially developed jointly would build upon Principle 5 of the Principles on Digital Assets and Private Law (DAPL), completing and supplementing UNIDROIT’s work by offering additional and more detailed guidance. During the meeting, the experts discussed at length issues of applicable law with particular regard to linked assets; transfer, secured transactions and custody of digital assets; as well as the role of party autonomy and the applicability of different types of connecting factors to digital assets in cross-border cases. The work would be a natural follow-up to the DAPL. It would be complementary in nature and contribute to strengthening the impact of the recently adopted UNIDROIT instrument.

The exploratory and preparatory work on the Joint Project was formally approved by the Council on General Affairs and Policy (CGAP) of the HCCH and by the UNIDROIT Governing Council earlier this year. Based on the results of the meeting, the two Secretariats are now expected to report to their bodies on the continuation of the Joint Project, and particularly on its formal approval based on respective procedures and methodologies.

A report of the second meeting of the Joint Project will be published in the coming months. Learn more about this project by reading the Project Proposal as presented to the 102nd Session of the UNIDROIT Governing Council.

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