PROSPECTS FOR IMPROVING THE LEGAL REGULATION OF DIGITAL ASSETS IN UZBEKISTAN

Abstract

The rapid development of blockchain technology, cryptocurrencies, tokens, and other forms of digital assets has created new challenges for national legal systems, particularly in determining their legal status, ownership, transfer, and applicable law in cross-border transactions. In Uzbekistan, the legal regulation of digital assets has developed significantly in recent years; however, the existing regulatory framework remains primarily focused on the domestic circulation and licensing of crypto-assets and does not comprehensively address a number of private-law and conflict-of-laws issues arising from cross-border transactions involving digital assets. This article examines the prospects for improving the legal regulation of digital assets in Uzbekistan from the perspective of contemporary developments in international private law and comparative legal practice. The study analyses the principal theoretical approaches to determining the legal nature and applicable law of digital assets, including the lex rei sitae, lex voluntatis, control-based, and elective situs approaches. Particular attention is given to the UNIDROIT Principles on Digital Assets and Private Law, which provide an important international framework for addressing proprietary and private-law issues related to digital assets. The article also considers comparative approaches reflected in the legal frameworks of the European Union, the United States, Singapore, the United Kingdom, and other jurisdictions. On this basis, the study identifies gaps in the current Uzbek legal framework concerning the determination of applicable law, jurisdiction, ownership, transfer, and recognition of rights in digital assets in cross-border transactions. The article proposes directions for further development of Uzbek legislation, including the establishment of specific conflict-of-laws rules for digital assets, the development of flexible connecting factors based on control, the parties’ choice of law, and the location of relevant digital-asset infrastructure, as well as the gradual implementation of internationally recognized approaches reflected in the UNIDROIT Principles. The proposed reforms are aimed at increasing legal certainty, protecting the rights of participants in digital-asset transactions, facilitating cross-border transactions, and ensuring the compatibility of Uzbekistan’s legal framework with emerging international standards.