Conflict of laws arising from on-chain BTC transfers

BTC, the first and most well-known cryptocurrency, was introduced by Satoshi Nakamoto in 2008 as a peer-to-peer digital payment system. It is based on decentralised, permissionless, and distributed blockchain technology. BTC holds economic value and can be transferred between users worldwide. These transactions are validated by miners and approved by users located in different countries, giving BTC a cross-border nature. As a digital and global asset, BTC creates new legal challenges, especially in the field of private international law. In BTC transfers, there is no physical or digital assets being assigned —instead, the information on which user has control over the BTC is updated on the blockchain. This raises legal issues about who owns the BTC. On the other hand, when BTC is used as a form of payment or contractual money, similar to credit cards, it may involve both ownership and contract issues and those may be governed by different laws. BTC does not clearly fit into traditional legal categories like property, money, or legal claims. Therefor, applying standard conflict-of-law rules to BTC transactions is presenting difficulties. This reserach examines how to determine the applicable law for disputes involving cross-border on-chain BTC transfers, especially regarding ownership and contract-based obligations. The research aims to examine whether the traditional lex rei sitae rule (law of the place where the asset is located) can apply to BTC transfers and to presents modern approaches such as PROPA, PREMA, PResC and elective situs. The research also examines situations where BTC transfers are either based on or result from a contract. In these cases, the reserach examines how to determine the applicable law by referring to Article 24 of the Act on Private International Law and International Procedural Law No. 5718 and the Rome I Regulation. In conclusion, the reserach that there is no one-size-fits-all rule for all BTC-related disputes. Instead, the appropriate law should be determined according to the specific circumstances of each case. Therefore, legal systems should develop adaptable legal frameworks that take into account both the technical features of blockchain and the practical realities of cryptocurrency transactions. Keywords: BTC, Conflict of Law, Private International Law, Bitcoin Blockchain, Crypto Currencies