Research and development in private law

Research and development in private law

Seizure of Cryptocurrencies: A Convergence of Law and Technology in Civil Judgment Enforcement

Document Type : Original Article

Author
PhD in Private Law and Judge of the Supreme Court, Tehran, Iran
Abstract
The process of identifying and detaining assets during the enforcement of a civil judgment is the most important and effective action. Therefore, most of the executive decrees (from Article 49 onwards of Civil Procedure Act of Iran) are aimed at this matter. Also, most of the ancillary claims and sudden events in the scope of enforcement are related to the seizure of property. A serious concern in this regard is access to the property of judgement debtor and the possibility of its entry into the seizure process because sometimes, even properties with economic value and equivalent to the property subject to the judgment, cannot be seized for some reasons. On the other hand, judgment debtors always seek to remove their assets from the scope of search of judgment creditor and enforcement section. This context, as well as the lack of effective regulations and executive orders, have led to suspicion and hesitation in the possibility of detaining some properties. An example of this properties is cryptocurrencies and digital assets. Cryptocurrencies are a new symbol of the development of technology and economic developments, which makes the link between law and technology inevitable. We should wait to see what reaction and judgment the doctrine and legal rules consider for this product. For instance, in the scope of the enforcement of the judgment, when no property is obtained from the judgment debtor, possible to arrest the Cryptocurrency discovered from debtor and attach and receive it from that place? What is the view of judicial precedent in our country and comparative law on this issue? What are the challenges and difficulties in the process of seizure of property? In the conflict of the economic nature of this property, the vast scope of properties seizure, the principle of the certainty of execution of the sentence and respect for the judgment and enforcement order on the one hand, and the lack of clear regulations and ambiguity on how to seize and withdraw cryptocurrency on the other hand, what method and option should the bailiff choose? In this research study these important questions and challenges.
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