General essay on virtual assets

24/ 03/ 2023

Author: Oleksiy Hrachov, attorney at Dynasty Law & Investment If the question Do you have bonus miles for the flight? If you answered yes, then congratulations: you are the happy owner of a virtual asset. The latter, of course, is not limited to discounts on goods. Virtual assets have long become objects of transactions and investments. Specialized markets are forming around them. The demand of participants in civil transactions for virtual assets is growing rapidly, and therefore it is necessary to take care of including this tool in their own transactions. So what are “virtual assets”? A special law, which has not yet entered into force, defines them as an intangible good that is the object of civil rights, has a value and is expressed as a set of data in electronic form. A similar definition is laid out in the EU directive proposed for approval on the regulation of the crypto-assets market. It is the valuable expression of virtual assets that allows them to become negotiable intangible goods, or even to certify property rights as claims on other objects of civil rights. The latter should be understood as a confirmation of the right of the owner of the secured virtual asset to demand the security object with the only feature that such security is not security for the fulfillment of obligations. As a result, enforcement of security is regulated by a special law, not by the norms of the Civil Code of Ukraine. Dynasty Law & Investment professionals will help you understand the intricacies of virtual assets and correctly include them in your transactions.

Author: Oleksiy Hrachov, attorney at Dynasty Law & Investment

If the question “Do you have bonus miles for the flight?” If you answered yes, then congratulations: you are the happy owner of a virtual asset. The latter, of course, is not limited to discounts on goods.

Virtual assets have long become objects of transactions and investments. Specialized markets are forming around them.

The demand of participants in civil transactions for virtual assets is growing rapidly, and therefore it is necessary to take care of including this tool in their own transactions.

So what are “virtual assets”? A special law, which has not yet entered into force, defines them as an intangible good that is the object of civil rights, has a value and is expressed as a set of data in electronic form. A similar definition is laid out in the EU directive proposed for approval on the regulation of the crypto-assets market.

It is the valuable expression of virtual assets that allows them to become negotiable intangible goods, or even to certify property rights as claims on other objects of civil rights.

The latter should be understood as a confirmation of the right of the owner of the secured virtual asset to demand the security object with the only feature that such security is not security for the fulfillment of obligations. As a result, enforcement of security is regulated by a special law, not by the norms of the Civil Code of Ukraine.

Dynasty Law & Investment professionals will help you understand the intricacies of virtual assets and correctly include them in your transactions.