Charles Russell Speechlys has successfully represented the appellants in a landmark case before the Dubai International Financial Centre (DIFC) Courts which clarified the law in relation to cryptocurrency.
The lead judgment in the case, which centred on the loss of 300 Bitcoin, was given by the head of the Digital Economy Court, Justice Michael Black KC, and was handed down today.
In his judgment, Justice Black confirmed that cryptocurrencies are a “third class of property”. He also clarified that cryptocurrencies are capable of being owned and transferred through control by, for example, possession.
The judgment also defined key cryptocurrency terms, such as ‘Bitcoin’ and ‘Wallet’, to offer guidance to the industry.
The court ordered a retrial on some issues. Accordingly, the judgment leaves open certain questions including whether or not damages are payable in cryptocurrencies and the appropriate time to value cryptocurrencies.
The Charles Russell Speechlys team comprised partner Sara Sheffield and legal directors Max Davis and Peter Smith, with counsel provided by Andrew Spink KC and Justina Stewart of Outer Temple Chambers.
Sheffield, who is head of the firm’s offshore litigation in the DIFC and ADGM, said: “I am delighted for our clients, whose determination and perseverance has paved the way for this important judgment, which offers clarity not only as to the law in the DIFC, but to the wider digital assets community.”
Davis added: “It is very rare to have the opportunity to work on a case that establishes the answers to important legal questions that will reverberate around the world. It is a privilege to have been part of the team grappling with these issues and to have worked alongside our clients to achieve this result for them.”
Digital assets represent a trillion-dollar asset class, presenting significant opportunities for innovation and investment. Yet, questions abound across several jurisdictions as to their regulation and enforcement. International judgments across the common law world have begun to provide some clarity but have not yet provided a comprehensive legal framework.
In March the DIFC issued a new law on digital assets to provide legal certainty for users and investors in the rapidly evolving sector.
