The Applicable Law to Proprietary Issues on Digital Assets considering Recent Developments: Lex rei Sitae or Not?

Abstract

The legal nature of digital assets and the applicable law for digital assets have been debated in recent years in many legal systems, including Turkish law. The inability to reach a definite conclusion on evaluating the legal nature of digital assets in Turkish law makes it difficult to determine the applicable law to proprietary issues on digital assets in private international law. In the context of conflict of laws rules, determining the applicable law for rights over digital assets depends more on the medium in which the asset is recorded than its function. National legislators and legal institutions are seeking new connecting factors beyond the traditional lex rei sitae principle, given that digital assets predominantly exist in electronic environments. Therefore, our study aims to address how to bridge the gap in Turkish private international law concerning the applicable law for digital asset proprietary issues by drawing on comparative law developments.

Keywords

• Digital assets
• Blockchain
• Proprietary
• Applicable Law
• Lex rei sitae

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