Published
4 weeks ago on
March 28, 2024
The Hague International Legal Institution has unveiled a plan focused on the tokenization of digital assets. This initiative seeks to address the legal uncertainties facing cross-border businesses by clarifying applicable laws and the recognition of legal decisions.
The project will deal with various token types, including real estate tokens, utility tokens, payment tokens, NFTs, stablecoins, and tokens linked to specific claims, aiming to outline potential use cases.
This study won’t cover securities, central bank digital currencies, and carbon credits since they’re being examined in a different project. The goal is to provide a report with actionable recommendations to the Consultative Group on Administrative Priorities (CGAP) by 2025, identifying clear legal frameworks for digital token use.
This project will work with experts in digital tokens and those experienced in national digital token projects. The project’s foundation is built on the principles adopted in 2023 for digital assets in a joint effort by the International Institute for the Unification of Private Law (UNIDROIT) and the Hague Conference on Private International Law (HCCH).
Key focus areas include the application of existing custody rules to digital assets and the exploration of “linked assets” or tokenized assets, paving the way for a more structured legal environment in the rapidly evolving digital token landscape.
Also read: Dubai Sets a New Course with Digital Assets Law
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