How UNIDROIT Principle 5 determines the law applicable to digital assets

Development summary

B. Steinrötter considers Principle 5 of the UNIDROIT Principles on Digital Assets and Private Law in the context of determining the law applicable to proprietary or property-related issues concerning digital assets. The article focuses on the relationship between the provision’s choice-of-law approach, its objective connecting factors and conventional private-international-law structures.

It argues that the applicable law may be fixed by those creating the digital asset or establishing the relevant DLT system, rather than by the parties to the transaction. On that reading, Principle 5 is directed primarily towards substantive-law interests rather than the identification of the closest connection, adding a further dimension to the conflict-of-laws debate on the materialisation of private international law.