5Meaning of control

(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—

(a)

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

(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.