THE FUTURE OF INVESTMENT ARBITRATION IN THE DIGITAL ECONOMY AND CRYPTO-INVESTMENTS

Abstract

The rapid expansion of the digital economy and the growing capitalization of crypto-assets have exposed a structural gap between traditional international investment law and the realities of blockchain-based finance. This article examines whether crypto-assets, including cryptocurrencies, tokens, and stablecoins, can be qualified as “investments” for the purposes of international investment arbitration and analyses the principal obstacles that arise when investors attempt to protect such assets under existing bilateral investment treaties (BITs) and the ICSID Convention. Using doctrinal, comparative, case-law, and scenario-based methods, the study reviews national approaches to the legal classification of crypto-assets, relevant judicial and arbitral decisions, soft-law standards developed by international organizations such as FATF, IOSCO, OECD, IMF, and UNCTAD, and the applicability of the Salini criteria to token-based investments. The findings show that the absence of a uniform international legal framework, combined with restrictive or insufficiently adapted treaty definitions of “investment,” may leave investors in crypto-assets without predictable access to arbitral protection, particularly with regard to territorial nexus, jurisdiction, and evidentiary issues. The article argues for the modernization of BIT definitions, the incorporation of digital-asset provisions into investment treaties, and the development of a “techno-legal” model of arbitration supported by blockchain-based evidence and online dispute-resolution mechanisms. Practical recommendations for improving Uzbekistan’s investment legislation are also proposed.