Abstract

The rapid expansion of cryptocurrency markets has led to a parallel rise in legal disputes stemming from digital asset transactions, prompting increasing reliance on arbitration as a preferred dispute resolution mechanism. This article explores the evolving relationship between arbitration and cryptocurrency trading, focusing on the global and Turkish contexts. It highlights the unique challenges posed by crypto disputes, including the volatility of digital assets, cross-border jurisdictional issues, technological complexity, and inconsistent legal frameworks. The paper evaluates the suitability of arbitration for resolving such disputes, emphasizing its advantages-such as procedural flexibility, confidentiality, and international enforceability-while acknowledging its limitations, especially in cases involving consumer rights and public policy concerns. Through an analysis of recent landmark decisions and legislations in the World, the article demonstrates the nuanced judicial attitudes toward the arbitrability of crypto-related conflicts. Finally, it examines Türkiye’s new regulatory framework introduced by Law No. 7518, concluding that arbitration is a legally viable option for crypto disputes in Türkiye, though its application may be shaped by future court interpretations, particularly concerning consumer protections and public interest considerations.

This paper will be part of the TDM Special Issue on "Cryptocurrencies and Other Digital Assets in Arbitration". More information here www.transnational-dispute-management.com/news.asp?key=2080