PROBLEMATIC ASPECTS OF CIVIL LITIGATION INVOLVING BITCOIN

Abstract

This article analyzes the main problems encountered in civil proceedings dealing with bitcoin. It is possible to distinguish two main features of bitcoin, on the basis of which certain problems arise in the civil procedure: decentralization and anonymity. In light of the aforementioned traits of bitcoin, this study analyzes international legal doctrine and case law that has dealt with bitcoin or other cryptocurrencies. One of the key issues that the courts have to deal with is deciding whether bitcoin can be the subject of property rights. The author argues that the main distinguishing feature that characterizes the ownership of a bitcoin is the ownership of the private key of the cryptocurrency. Considering the different perspectives of handling civil cases involving bitcoins, the article discusses two different situations: first, situations involving the identity of the person who owns the private bitcoin key; second, situations where the identity of the person who owns the private key is not known. According to the author, in the second case, challenges in the civil procedure will be faced from the initiation of the civil case to the enforcement stage.

Keywords

• cryptocurrency
• bitcoin
• civil procedure