The Hague Conference on Private International Law (HCCH) has embarked on a project aimed at providing legal clarity to cross-border businesses dealing with digital assets. This initiative seeks to address various types of digital tokens, including real estate tokens, utility tokens, payment tokens, NFTs, and stablecoins, excluding securities and central bank digital currencies already under consideration in separate projects.
The project, conducted alongside specialists and external observers, will explore preliminary legal questions surrounding digital securities and blockchain-based digital asset management. It also aims to identify which laws apply to cross-border businesses and how legal rulings are enforced internationally. Additionally, a proposal suggests commissioning a study on the private international law implications of digital tokens, with a report and recommendations expected by 2025.
This joint effort by the HCCH and UNIDROIT reflects the growing interest and recognition of tokenization’s potential in transforming financial and non-financial markets. As established financial institutions increasingly explore tokenization, initiatives like this project play a crucial role in addressing legal complexities and facilitating the adoption of digital asset technologies on a global scale.
