ABSTRACT
Cryptoassets, including cryptocurrencies such as Bitcoin, have become well-known, (sometimes) financially valuable and highly controversial assets. Yet from a Scots law perspective, academic commentary remains limited and there is an absence of reported cases. The Scottish Government has, however, recently consulted on digital assets, including cryptoassets, in Scots private law. Reform as proposed would confirm the property status of digital assets and clarify the law governing their transfer and good faith acquisition. However, there are particular difficulties in adapting the existing Scots law of rights in security and diligence (debt enforcement) to take account of cryptoassets. Now that debate regarding the property status of cryptoassets appears to be reaching a conclusion, attention should turn to these issues and the related area of insolvency law. This article addresses how the current law of security rights and diligence apply to cryptoassets. It identifies the various problems with the existing law, particularly for diligence. In addition to setting out the problems, this article concludes that there are at least partial solutions already on the statute book which can be brought into force in parallel with legislation on digital assets.
MacPherson, Alisdair and Sweeney, Andrew, Cryptoassets, Security Rights and Diligence (June 7, 2025).
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