Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Hague Legal Organization Initiates Digital Asset Tokenization Initiative to Address International Issues
The Hague Conference on Private International Law (HCCH) has launched an initiative focused on the tokenization of digital assets. The objective is to provide legal clarity for cross-border enterprises involved with digital assets.
This initiative will cover a range of digital token categories. It will also investigate initial legal inquiries related to digital securities and the management of blockchain-based digital assets.
The intergovernmental organization seeks to elucidate which laws govern cross-border operations and how legal decisions are enforced on an international scale.
Proposal Calls for CGAP Study on Private International Law Issues of Digital Tokens
A recent proposal suggests that the Council on General Affairs and Policy (CGAP) undertake a study examining the private international law ramifications of digital tokens, such as real estate tokens, utility tokens, payment tokens, NFTs, and stablecoins.
This study will not include securities, central bank digital currencies, or carbon credits, as these topics are already being addressed in a separate initiative.
The objective of the study is to produce a report with recommendations for future actions to be presented to the CGAP by a scheduled meeting in 2025.
Related Posts
Collaborative Project Identifies Tokenization as a Primary Focus
Moreover, the project will be carried out in collaboration with relevant experts and external observers.
After the adoption of digital asset principles in 2023, the International Institute for the Unification of Private Law (UNIDROIT) partnered with the HCCH on a collaborative project. Through a series of discussions, they identified potential areas for future exploration.
They concentrated on topics such as applying existing custody regulations (as defined by UNIDROIT) to contexts beyond traditional custody, and examining the legal ramifications of “linked assets” (tokenized assets).
Established financial institutions are showing increasing interest in the possibilities offered by tokenization.
Moody’s recently noted a significant increase in the value of tokenized funds, largely driven by the tokenization of US treasury assets. Likewise, Bank of America predicts that tokenization will revolutionize both financial and non-financial markets in the coming years.
The post Hague Legal Body Launches Digital Asset Tokenization Project to Tackle Cross-Border Challenges appeared first on Cryptonews.
