Gilead Cooper QC

Virtual property as trust assets and investments

Following a number of recent decisions, it now seems reasonably settled that digital assets such as cryptocurrencies will as a matter of law be regarded as “property”. One consequence is that cryptocurrencies can be the subject of a trust and may be held as investments. However, the unique features of digital assets give rise to a number of problems on which there is little authoritative guidance. The impact of s 53(1)(c) of the Law of Property Act 1925 (LPA), in particular, appears to have been overlooked in cases where cryptocurrencies have been found to be held on express trust for multiple co-owners.