5Meaning of controlS

(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.

Commencement Information

I1S. 5 not in force at Royal Assent, see s. 9(2)