§ 4-11-104 — Rights in virtual currency

Arkansas § 4-11-104

• Jurisdiction: Arkansas
• Title: 4

Text

(a) In this section: (1) "Adverse claim" means a claim that a claimant has a property interest in a virtual currency and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the virtual currency. (2) "Qualifying purchaser" means a purchaser that obtains control of a virtual currency for value and without notice of any adverse claim. (b) Subject to subsections (c) through (h), law other than this chapter determines whether a person acquires rights in a virtual currency and the rights that the person acquires. (c) A purchaser of a virtual currency acquires all rights in the virtual currency that the transferor had or had power to transfer. (d) A purchaser of a limited interest in a virtual currency acquires rights only to the extent of the interest purchased. (e) In addition to acquiring the rights of a purchaser, a qualifying purchaser acquires its rights in a virtual currency free of any adverse claim. (f) An action based on an adverse claim to a virtual currency, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a qualifying purchaser that acquires its interest in, and obtains control of, the virtual currency for value and without notice of the adverse claim. (g) A person has notice of an adverse claim if: (1) the person knows of the adverse claim; or (2) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim. (h) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to a virtual currency.

Legislative History

Added by Act 2021, No. 1078,§ 7, eff. 7/28/2021.