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Section 5 Meaning of controlI1I2

Scotland

(1)

This section makes provision about determining who has control of a digital asset for the purposes of this Act.

(2)

A person has control of a digital asset if the person has the ability to initiate in relation to it—

(a)

a transfer transaction within the electronic system giving rise to the asset, or

(b)

if the system does not facilitate transfer transactions, a divestiture transaction within the system.

(3)

In this section—

  • “divestiture transaction” means a transaction that results in no person being able to initiate any further transaction in relation to the asset,

  • “transfer transaction” means a transaction that results in—

    1. (a)

      the person who initiated the transaction losing the ability to initiate a transfer transaction in relation to the asset, and

    2. (b)

      another person gaining (directly or indirectly) the ability to initiate a transfer transaction in relation to the asset or some quantity of that type of asset.

Annotations

Commencement

I1

S. 5 not in force at Royal Assent, see s. 9(2)

I2

S. 5 in force at 1.7.2026 by S.S.I. 2026/197, reg. 2(e)