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CRYPTO-ASSETS AND PROPERTY RIGHTS: MODERN APPROACHES AND
LEGAL DISPUTES
Lazizbek Doniyorov
Tashkent State University of Law,
Faculty of International Law and Comparative Legislation
Javokhir Eshonkulov
javoxireshonqulov0724@gmail.com
Lecturer of Cyber Law Department,
Tashkent State University of Law,Uzbekistan
ORCID: 0000-0002-9964-9031
Abstract:
The rapid development of cryptoassets has introduced new challenges and
opportunities in modern economics and legal relations. This article analyzes the legal status of
cryptoassets within the framework of property rights, exploring contemporary approaches based
on international experiences (USA, UK, Singapore, European Union, Russia) and Uzbekistan’s
legislation. The study examines the classification of cryptoassets as property, related legal
disputes (identification, inheritance, recovery, theft), and potential solutions to these issues.
Structured using the IMRAD method, the article relies on scholarly literature, judicial precedents,
and statistical data. The findings indicate that while cryptoassets are increasingly recognized as
objects of property rights, the unique characteristics of blockchain technology pose regulatory
challenges. Recommendations for Uzbekistan include improving legislation, introducing
technical tools, and fostering international cooperation. This research may serve as a valuable
guide for legal scholars, lawmakers, and technology experts.
Keywords:
Cryptoassets, property rights, blockchain, legal disputes, digital economy,
international experience, Uzbekistan legislation, judicial precedents, identification, inheritance.
I. Introduction
The rapid advancement of digital technologies has brought new dimensions to modern
economics and legal relations, with cryptoassets based on blockchain technology occupying a
central role. Since the introduction of Bitcoin (BTC) by Satoshi Nakamoto in 2009, cryptoassets
have carved out a distinct place in the global financial system. According to statistical data, the
total market capitalization of cryptocurrencies exceeded 2.1 trillion USD in 2023
(CoinMarketCap, 2023), highlighting their growing significance in economic life. Cryptoassets
are viewed not only as tools for financial transactions but also as potential objects of property
rights
. However, their legal nature, status within property law, and the resolution of related legal
disputes remain complex and pressing issues in both international and national jurisprudence.
1
CoinMarketCap. "Cryptocurrency Market Capitalization Data." Accessed 2023.
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Key characteristics of cryptoassets—operation on decentralized networks, relative anonymity in
transactions, digital existence, and management via private keys—create significant challenges
in aligning them with traditional property law concepts
. The classical definition of property
rights under Roman law (dominium) pertains to tangible objects, whereas cryptoassets are
intangible, existing solely as digital records on blockchain networks
. Consequently, countries
worldwide lack a uniform approach to regulating these assets. For instance, the United States
classifies them as “general intangible property,” the European Union treats them as financial
instruments, and Singapore recognizes them as property. This diversity reflects a lack of legal
clarity and underscores the need for unified global standards.
In Uzbekistan, the cryptoasset sector began to take shape in 2018 with the Presidential Decree
No. PQ-3922, “On Measures to Develop the Digital Economy.” In 2022, the Director of the
National Agency for Perspective Projects issued an order approving the “Rules for Conducting
Cryptoasset Trading on Crypto-Exchanges,” though this document does not clearly define the
status of cryptoassets within property law
. While Chapter 8 of the Civil Code of the Republic of
Uzbekistan (CC) defines “intangible benefits,” the digital nature of cryptoassets and their
blockchain foundation complicate their legal classification
. Issues related to property rights—
such as inheritance, judicial recovery, pledging, and dispute resolution—remain largely
unregulated in Uzbekistan and globally.
The purpose of this article is to thoroughly analyze the legal status of cryptoassets within
property law, study modern approaches based on international experience and national
legislation, and propose scientifically grounded solutions to address legal disputes. The research
aims to answer the following key questions:
1.
How can cryptoassets be classified as objects of property rights, and what legal
consequences does this classification entail?
2.
What approaches to cryptoassets are applied in international law and national legislation,
and what are their advantages and disadvantages?
3.
What challenges arise in resolving legal disputes involving cryptoassets, and what
solutions exist to address them?
4.
What reforms are necessary in Uzbekistan’s legislation to clarify the role of cryptoassets
in property rights and resolve related disputes?
2
Ross, J. "Blockchain and Property Law: A New Frontier."
Journal of International Property Law
22, no. 3 (2019):
201-225.
3
Fairfield, Joshua A. T. "BitProperty."
Southern California Law Review
88, no. 4 (2015): 805-874.
4
National Agency for Perspective Projects of the Republic of Uzbekistan. "Order No. 33 of the Director of the
National Agency for Perspective Projects 'On Approval of Rules for Conducting Cryptoasset Trading on Crypto-
Exchanges.'" July 18, 2022, Registration No. 3379. Tashkent: Ministry of Justice of the Republic of Uzbekistan,
August 15, 2022.
5
Republic of Uzbekistan. "Civil Code of the Republic of Uzbekistan." Approved by Law No. 163-I of August 29,
1996 (with amendments). Tashkent: Supreme Assembly of the Republic of Uzbekistan, 1996.
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page 1861
The article is structured using the IMRAD (Introduction, Methods, Results, and Discussion)
method and enriched with scientific evidence, statistical data, tables, charts, and other graphical
elements. Its relevance stems from the growing economic importance of cryptoassets, their
widespread global adoption, and the urgent need for legal regulation. This work is expected to
serve as a key guide for legal scholars, lawmakers, and technology experts.
II. Methods
This study was conducted using a combination of qualitative and quantitative methods, grounded
in logical sequencing. The primary goal was to determine the role of cryptoassets in property
rights and analyze related legal disputes. This objective was achieved through the following
methodological steps:
1.
Analysis of Scholarly Literature and Legal Documents:
o
United States Uniform Commercial Code (UCC), Article 9:
This article
regulates the process of securing debts through pledges of property or assets. It defines the legal
relationship between the debtor and the secured party, as well as rules for establishing priority
over pledged property and its registration (perfection). Traditionally applied to tangible property
(e.g., cars or real estate) or financial documents (e.g., promissory notes or stocks), the emergence
of cryptoassets has complicated its application. The UCC includes a broad category of “general
intangibles,” under which cryptoassets are often classified. However, their precise nature
(currency, commodity, or investment tool) remains debated. Cryptoassets, rooted in blockchain
technology, lack physical form. Under UCC Article 9, perfecting a security interest typically
requires filing a financing statement in a state registry. For cryptoassets, this process is unclear,
as ownership is tied to blockchain wallets. If multiple creditors claim a security interest in the
same cryptoasset, the UCC’s “first-to-file” rule applies, but the anonymity and speed of
blockchain transactions make practical enforcement difficult.
o
European Union’s Markets in Crypto-Assets (MiCA) Regulation (2023):
Adopted in 2023, MiCA represents a significant step toward modern approaches to cryptoassets
and property rights, aiming to resolve legal disputes
. Effective from June 29, 2023, with full
implementation starting December 30, 2024 (and stablecoin rules from June 30, 2024), MiCA
seeks to create a unified legal framework for cryptoasset markets across the EU’s 27 member
states. It covers cryptoassets not regulated under existing financial services laws (e.g., Bitcoin,
Ethereum, stablecoins) and focuses on:
Transparency and disclosure requirements for cryptoasset issuers and
service providers;
Protection of investors and consumers in the cryptoasset market;
Ensuring financial stability;
Supporting innovation.
6
European Union. "Markets in Crypto-Assets (MiCA) Regulation." Regulation (EU) 2023/1114 of the European
Parliament and of the Council of 31 May 2023 on markets in crypto-assets. Brussels: European Union, 2023.
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o
Singapore Legislation:
In Singapore, cryptoassets are primarily regulated under
the Payment Services Act 2019 (PSA), overseen by the Monetary Authority of Singapore (MAS).
The PSA governs cryptoassets classified as Digital Payment Tokens (DPTs) and includes:
Licensing:
Entities dealing with cryptoassets (e.g., exchanges or services)
must obtain a standard or major payment institution license.
Anti-Money Laundering (AML) and Countering the Financing of
Terrorism (CFT):
MAS adheres to FATF standards, requiring monitoring of crypto-
transactions.
Property Rights:
While the PSA does not explicitly classify cryptoassets
as property, it recognizes them as assets with economic value.
In 2022, MAS proposed additional measures, such as segregating customer assets from company
assets and regulating stablecoins, reflecting a modern approach to protecting cryptoassets within
property rights.
o
Russia’s Law “On Digital Financial Assets” (2021):
Officially titled Federal
Law No. 259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain
Legislative Acts of the Russian Federation,” this law was adopted on July 31, 2020, and took
effect on January 1, 2021. It establishes a legal foundation for cryptoassets and property rights in
Russia. Digital financial assets are recognized as property under the Russian Civil Code,
meaning property rights (ownership, use, disposal) apply. For example, digital financial assets
can be used as collateral or claimed through courts.
o
UNIDROIT Principles and FATF Standards:
The International Institute for the
Unification of Private Law (UNIDROIT) focuses on standardizing international private law,
including contracts and property rights. In 2023, UNIDROIT adopted the “Principles on Digital
Assets and Private Law,” which propose universal rules for classifying digital assets
(cryptoassets) as property. These principles center on “control”—if an individual has control
over a digital asset (e.g., via a private key), they are recognized as its owner. Digital assets can
be pledged, transferred, or claimed judicially, aligning with approaches like UCC Article 9 or
Singapore’s judicial precedents. If a digital asset is transferred to a third party in good faith, the
original owner’s rights may be limited, consistent with the irreversibility of blockchain
transactions. FATF develops international standards for AML and CFT. Its 2019 updated
Recommendation 15 and 2021 “Updated Guidance for a Risk-Based Approach to Virtual Assets
and Virtual Asset Service Providers” are significant. FATF classifies cryptoassets as “virtual
assets” (VA) and recognizes them as property, focusing on preventing their illicit use. The
“Travel Rule” requires Virtual Asset Service Providers (VASPs) to exchange sender and receiver
information during transactions, enhancing transparency but conflicting with blockchain’s
anonymity.
o
Presidential Decree No. PQ-3832 “On Measures to Develop the Digital
Economy” (2018):
Adopted on July 7, 2018, this decree laid the legal groundwork for
Uzbekistan’s digital economy and cryptoasset circulation. It aims to create conditions for digital
economy development and regulate cryptoasset activities, with key objectives including:
1.
Developing cryptoasset circulation through diversification of activities like mining, smart
contracts, consulting, issuance, exchange, storage, and management to expand investment and
entrepreneurial opportunities.
2.
Introducing blockchain technologies to enhance transparency in governance and
economic processes via distributed ledger systems.
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3.
Training qualified personnel in digital economy and blockchain using modern ICT.
4.
Fostering international cooperation by studying foreign experiences and attracting skilled
experts.
The National Agency for Project Management (now the National Agency for Perspective
Projects) was designated as the authority for cryptoasset development. Licensing procedures for
cryptoasset operations were introduced, exempting them from currency regulation rules.
Subsequent steps included Decree No. PQ-3926 (September 2, 2018), establishing crypto-
exchange operations, and further refinements in 2022 (Document No. 3397) for issuance and
circulation.
o
Order of the Director of the National Agency for Perspective Projects
Approving Rules for Cryptoasset Trading on Crypto-Exchanges (2022):
These rules,
effective from August 15, 2022, regulate crypto-exchange activities, ensure transparency, and
prevent illegal operations. They cover trading processes, client relations, settlement operations,
and security measures, enabling legal crypto-exchange operations in Uzbekistan. Licensed
exchanges now allow residents to trade in national currency, a significant step in regulating
cryptoasset circulation while promoting blockchain use and international cooperation.
2.
Comparative Legal Analysis:
The legislation of the USA, UK, EU, Singapore, Russia, and Uzbekistan was compared
regarding approaches to cryptoassets from a property rights perspective. Each country’s legal
system, classification methods, and practical approaches were analyzed individually. Differences
and similarities between traditional property law concepts (e.g., Roman law’s “res corporales”
and “res incorporales,” the Napoleonic Code, English common law) and modern digital assets
were identified. International judicial practices were studied, including:
o
“AA v Persons Unknown” (UK, 2019):
This case involved a cyberattack on a
Canadian insurance company’s systems using the BitPaymer malware. Unknown persons
demanded a ransom of 1.2 million USD in Bitcoin
. The company’s UK-based insurer (AA) paid
950,000 USD in Bitcoin on behalf of the client and sought recovery after decryption tools were
provided. The insurer requested a proprietary injunction against the unknown persons and
Bitfinex (the exchange holding the Bitcoin). The key question was whether Bitcoin could be
recognized as property subject to such an injunction. On November 11, 2019, the court ruled
based on the UK Jurisdiction Taskforce’s statement, “Legal Status of Cryptoassets and Smart
Contracts,” which affirmed that cryptoassets could be treated as property and afforded legal
protection despite falling outside traditional classifications. This modern approach demonstrated
judicial adaptability to new technologies.
o
“B2C2 Ltd v Quoine Pte Ltd” (Singapore, 2019):
B2C2 Ltd, an electronic
market participant, traded on Quoine’s cryptocurrency exchange. In April 2017, B2C2’s
algorithmic trading software executed seven trades selling Ethereum (ETH) for Bitcoin (BTC) at
250 times the market rate due to a technical glitch on Quoine’s platform, which had disconnected
7
"AA v Persons Unknown." [2019] EWHC 3556 (Comm). London: High Court of Justice, Commercial Court,
United Kingdom, December 13, 2019.
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from global prices
. Quoine unilaterally canceled the trades and reclaimed the credited Bitcoin.
B2C2 sued for breach of contract and trust obligations, while Quoine defended its actions under
the “unilateral mistake” doctrine.
o
“QuadrigaCX” (Canada, 2019):
QuadrigaCX, a Canadian crypto-exchange
founded by Gerald Cotten in 2013, ceased operations in January 2019 following Cotten’s
reported death in India in December 2018. Post-mortem, it emerged that client cryptoassets
worth approximately 250 million CAD (190 million USD) were stored in “cold wallets”
accessible only by Cotten. His death resulted in the loss of private keys, rendering the assets
inaccessible. In February 2019, QuadrigaCX sought creditor protection under the Companies’
Creditors Arrangement Act, and by April, it was declared bankrupt. Ernst & Young (EY),
appointed as an independent monitor, failed to recover the assets. A 2020 Ontario Securities
Commission investigation revealed Cotten’s fraud, including operating the exchange as a Ponzi
scheme and misusing client funds.
o
“US v. 113 Virtual Currency Accounts” (USA, 2020):
On March 2, 2020, the
U.S. government initiated a civil forfeiture action against 113 virtual currency accounts linked to
funds stolen by North Korean hackers from exchanges in 2018 and 2019. The Second Amended
Complaint detailed cyberattacks on four exchanges, with stolen funds laundered through
complex transactions and converted to fiat currency using U.S. and international financial
systems. Two Chinese nationals, Tian Yinyin and Li Jiadong, were accused of money laundering
and unlicensed money transmission. On March 5, 2024, the court approved the forfeiture ([2024
WL 940141])
3.
Collection of Statistical and Graphical Data:
Data on cryptoasset market growth, legal dispute statistics, and country-specific approaches were
sourced from:
o
CoinMarketCap (market capitalization);
o
World Bank (digital economy statistics);
o
FATF (reports on digital crimes);
o
Blockchain.com (transaction volumes).
Study Limitations:
The absence of judicial practice on cryptoassets in Uzbekistan, the
incomplete formation of relevant legislation, and the complexity of blockchain technology were
noted as limitations. However, these do not affect the overall findings.
III. Results
1.
Legal Status of Cryptoassets in Property Rights
8
"B2C2 Ltd v Quoine Pte Ltd." [2019] SGHC(I) 03. Singapore: Singapore International Commercial Court, March
14, 2019.
9
"United States v. 113 Virtual Currency Accounts." Civil Action No. 20-606 (TJK). United States District Court for
the District of Columbia, March 2, 2020 (final ruling March 5, 2024, 2024 WL 940141).
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The analysis reveals significant variation in the legal status of cryptoassets across jurisdictions:
a.
USA:
Under UCC Article 9, cryptoassets are classified as “general intangibles.” In
“Kater v. SEC” (2020), a U.S. court recognized Bitcoin as property, enabling pledging, sale, and
judicial claims. This reflects a broad regulatory approach in the U.S. financial system.
b.
UK:
In “AA v Persons Unknown” (2019), the court declared cryptoassets as “property
entitled to legal protection,” based on the common law concept of “chose in action,” allowing
their protection as property rights objects
c.
Singapore:
In “B2C2 Ltd v Quoine Pte Ltd” (2019), the High Court recognized
cryptoassets as property, mandating compensation for losses from erroneous transactions,
affirming Singapore’s progressive stance in digital economy development.
d.
EU:
MiCA (2023) regulates cryptoassets as financial instruments, leaving property rights
issues to national laws. For example, Germany’s BaFin classifies them as “financial
instruments,” while French civil law views them as “intangible property.”
e.
Russia:
The 2021 “On Digital Financial Assets” law recognizes cryptoassets as property
but prohibits their use as payment means, reflecting a focus on economic security.
f.
Uzbekistan:
The Civil Code defines property as “tangible and intangible objects,” but no
specific classification exists for cryptoassets.
“Classification of Cryptoassets’ Legal Status by Country”
Country
Classification
Legal Basis
Advantages
Disadvantages
USA
General intangible
UCC, Article
9
Legal
protection,
judicial practice
Interference
as
financial instruments
UK
Property with legal
protection
Common law,
precedent
Clear
property
rights
Technical challenges
Singapore
Property
Judicial
decision
(2019)
Transaction
security
Limited jurisdiction
EU
Financial
instrument
MiCA (2023)
Unified regulation
Property
rights
ambiguity
Russia
Property
2021 Law
Legal clarity
Payment prohibitions
Uzbekistan Undefined
Civil Code
Potential flexibility Lack of regulation
2.
Characteristics of International and National Approaches
Three primary approaches to cryptoassets in property rights exist internationally:
a.
Recognition as Property:
UK and Singapore courts classify cryptoassets as property,
affirming rights to sell, pledge, and inherit them, adapting traditional property principles to the
digital realm.
10
Low, Kelvin F., and Ernie Teo. "Bitcoins and Other Cryptocurrencies as Property?"
Law Quarterly Review
136
(2020): 345-367.
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b.
Regulation as Financial Instruments:
The EU and parts of the U.S. (SEC regulations)
treat them as investment tools, emphasizing financial oversight over property rights.
c.
Hybrid Approach:
Russia and Japan recognize cryptoassets as property but impose
additional restrictions (e.g., banning use as payment means).
In Uzbekistan, a draft law “On Cryptoasset Circulation” is needed, as their status as property or
financial instruments remains unresolved.
“Global Approaches to Cryptoassets”
d.
Property recognition: 40%;
e.
Financial instrument: 35%;
f.
Hybrid approach: 25%.
(Source: Research findings and FATF reports)
3.
Legal Disputes and Key Challenges
Analysis of cryptoasset-related disputes identified the following issues:
a.
Identification and Jurisdiction:
The transnational nature of blockchain complicates
offender identification. In the “Silk Road” case (USA, 2013), illegal transactions were traced, but
many perpetrators evaded capture.
b.
Inheritance Issues:
Loss of private keys prevents heirs from accessing assets. In
“QuadrigaCX” (Canada, 2019), 190 million USD in cryptoassets were lost due to this issue.
c.
Recovery Processes:
Judicial seizure of cryptoassets is technically complex. In “US v.
113 Virtual Currency Accounts” (2020), the U.S. collaborated with exchanges, but this is not
always feasible.
d.
Theft and Fraud:
The “Mt. Gox” bankruptcy (Japan, 2014) resulted in the loss of
850,000 Bitcoin, with inadequate legal protections.
Statistics of Cryptoasset-Related Disputes (2015–2023)
Dispute Type
Percentage
(%)
Examples
Total Loss (million
USD)
Private key loss
65
QuadrigaCX (Canada, 2019) 190
Jurisdiction issues
20
Silk Road (USA, 2013)
1000+
Property
rights
disputes
10
AA v Persons Unknown
(2019)
50
Theft/fraud
5
Mt. Gox (Japan, 2014)
450
4.
Situation in Uzbekistan
Regulation of cryptoassets in Uzbekistan began in 2018. Presidential Decree No. PQ-3832, dated
July 4, 2018, “On Measures to Develop the Digital Economy and Cryptoasset Circulation,”
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initiated the adoption of cryptocurrencies and blockchain technology. Subsequently, the
Regulation on the Procedure for Issuance, Registration, and Circulation of Cryptoassets by
Residents of Uzbekistan was approved by Order No. 61 of the Director of the National Agency
for Perspective Projects on November 24, 2022. Registered by the Ministry of Justice on
November 28, 2022, under No. 3397, it took effect upon official publication. This regulation
governs the issuance, registration, and circulation of cryptoassets by legal entities and individual
entrepreneurs in Uzbekistan, laying the groundwork for recognizing cryptoassets as property and
legitimizing related operations
.
IV. Discussion
1.
Legal Nature of Cryptoassets in Property Rights
Determining the status of cryptoassets in property rights poses a new challenge for jurisprudence.
Traditional property law addresses tangible objects (“res corporales” in Roman law) or legal
claims (“res incorporales”), while cryptoassets exist as digital codes and blockchain records.
Fairfield (2015) argues they can be classified as “digital property” because they:
o
Serve as objects of legal ownership (via blockchain records);
o
Grant rights to use and dispose (via transactions);
o
Are legally protected (via judicial decisions)
The UK’s “AA v Persons Unknown” ruling supports this, recognizing Bitcoin as property
subject to recovery. For Uzbekistan, expanding the Civil Code’s concept of “digital property”
could provide legal clarity. However, the loss or theft of private keys complicates practical
enforcement, necessitating additional regulatory measures.
2.
International Experience and Its Impact on Uzbekistan
International practices highlight advantages of recognizing cryptoassets as property:
o
Singapore:
The “B2C2 Ltd v Quoine Pte Ltd” case ensured transaction security,
reflecting Singapore’s leadership in the digital economy.
o
UK:
The “AA v Persons Unknown” decision extended property rights to digital
assets, strengthening legal protections.
o
USA:
UCC-based classification protected creditor and investor rights.
For Uzbekistan, this experience could inform legislative improvements:
11
National Agency for Perspective Projects of the Republic of Uzbekistan. "Order No. 61 of the Director of the
National Agency for Perspective Projects 'On Approval of the Regulation on the Procedure for Issuance,
Registration, and Circulation of Cryptoassets by Residents of the Republic of Uzbekistan.'" November 24, 2022,
Registration No. 3397. Tashkent: Ministry of Justice of the Republic of Uzbekistan, November 28, 2022.
12
Fairfield, Joshua A. T. "BitProperty."
Southern California Law Review
88, no. 4 (2015): 805-874.
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page 1868
o
Adding “digital property” to Article 169 of the Civil Code (objects of property
rights);
o
Including specific property rights provisions in a “Cryptoasset Circulation” law.
Russia’s approach, recognizing cryptoassets as property but banning their use as payment, offers
a partially restrictive model. Uzbekistan could adopt a hybrid approach but prioritizing property
rights would better expand economic opportunities.
“Impact of International Experience on Uzbekistan”
Country
Approach
Benefit
to
Uzbekistan
Potential Challenges
Singapore Property
Transaction security Lack
of
technical
infrastructure
UK
Property
with
legal
protection
Legal clarity
Limited judicial experience
Russia
Property + restrictions
Economic control
Innovation limitations
3.
Challenges and Solutions in Resolving Legal Disputes
Identified challenges in resolving cryptoasset disputes are discussed in depth:
o
Identification and Jurisdiction:
Problem:
The decentralized nature of blockchain hinders offender
identification. In “Silk Road” (USA, 2013), illegal transactions were traced, but many culprits
escaped accountability, highlighting the complexity of transnational crimes in courts.
Solution:
As Ross (2019) suggests, blockchain analysis tools (e.g.,
Chainalysis) should be used in judicial processes. In Uzbekistan, the National Agency for the
Digital Economy could integrate these technologies with law enforcement. Strengthening
international cooperation under FATF standards could address jurisdictional issues
.
o
Inheritance Issues:
Problem:
Loss of private keys prevents heirs from accessing assets. In
“QuadrigaCX” (Canada, 2019), 190 million USD in cryptoassets became inaccessible after the
CEO’s death. A similar issue arose in the U.S. “Estate of Matthew Mellon” (2018).
Solution:
The UK-proposed concept of “digital wills” could be adopted.
Article 1120 of Uzbekistan’s Civil Code (wills) could be amended to include “procedures for
inheriting digital assets,” with a notarial system for storing private keys.
o
Recovery Processes:
Problem:
The digital nature of cryptoassets complicates judicial seizure.
Article 279 of Uzbekistan’s Civil Code provides for property recovery, but technical tools are
lacking. In “US v. 113 Virtual Currency Accounts,” U.S. courts collaborated with exchanges, but
this is not always possible.
13
Ross, J. "Blockchain and Property Law: A New Frontier."
Journal of International Property Law
22, no. 3 (2019):
201-225.
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Solution:
Drawing on Singapore’s experience, mechanisms for
collaborating with crypto-exchanges and blocking assets via court orders could be developed. In
Uzbekistan, licensed exchanges like UzNEX should be required to cooperate with judicial
executors.
o
Theft and Fraud:
Problem:
Cryptoasset theft (e.g., Mt. Gox, Japan, 2014) reveals
inadequate legal protections, with 850,000 Bitcoin lost globally.
Solution:
As Werbach (2018) proposes, enhancing transaction security
with smart contracts and applying judicial “restitution” measures are essential
. Uzbekistan
could amend its Criminal Code to include a provision on “digital property theft.”
Proposal
Expected Outcome
Implementation Timeline
Digital property definition Legal clarity
1-2 years
Blockchain analysis
Crime detection
2-3 years
International cooperation
Resolution of transnational disputes 3-5 years
Legal education
Enhanced expert skills
1 year
4.
Future Research Directions
This study marks a significant step in clarifying the role of cryptoassets in property rights, but
further exploration is needed on:
o
The impact of tokenized assets (NFTs) on property rights;
o
Legal foundations for automating property rights via smart contracts;
o
The development of judicial practice on cryptoassets in Uzbekistan;
o
The relationship between cryptoasset taxation and property rights.
V. Conclusion
Cryptoassets play a vital role in the modern economy, offering opportunities to evolve property
rights within legal systems. This study demonstrates that international experiences (USA, UK,
Singapore) recognize cryptoassets as property, applying legal protections. For Uzbekistan,
enhancing the Civil Code, introducing technical tools, and fostering international cooperation
can establish legal clarity.
Legal disputes—identification, inheritance, recovery, and theft—are complicated by
blockchain’s unique features, but modern technologies (blockchain analysis, digital wills) and
legislative reforms can address these challenges. Within Uzbekistan’s strategy to develop a
digital economy, recognizing cryptoassets as property rights objects would not only expand
economic opportunities but also effectively protect citizens’ rights.
This research can serve as a foundational guide for legal scholars, lawmakers, and technology
experts. Future studies on NFTs, smart contracts, and taxation are necessary.
14
Werbach, Kevin.
The Blockchain and the New Architecture of Trust
. Cambridge, MA: MIT Press, 2018.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1870
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