28-5303 DEFINITIONS.

28-5303. Definitions. As used in this chapter:

(1) "Adverse claim" means a claimant that has a property interest in a virtual currency or a right to payment evidenced by the virtual currency.

(2) "Control" means the ability to exclude others from the use of property and includes the following:

(a) A secured party, or an agent, custodian, fiduciary, or trustee of the party, that has complied with section 28-8-106, Idaho Code, including by means of a private key or the use of a multi-signature arrangement exclusive to the secured party or any substantially similar analogue; and

(b) A smart contract created by a secured party to comply with section 28-8-106, Idaho Code. As used in this paragraph, "smart contract" means an automated transaction as described in section 28-50-114, Idaho Code, or any substantially similar analogue comprised of code, script, or programming language that executes the terms of an agreement and may include taking custody of and transferring an asset or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.

(3) "Digital asset" means a representation of economic, proprietary, or access rights that is stored in a computer-readable format and includes an open blockchain token, digital commodity, digital security, virtual currency, and any other controllable electronic record.

(4) "Digital security" means a digital asset that constitutes a security as defined in section 30-14-102, Idaho Code.

(5) "Multi-signature arrangement" means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset in which two (2) or more private keys are required to conduct a transaction or any other substantially similar analogue.

(6) "Possession" includes use of a private key, a multi-signature arrangement exclusive to the secured party, a smart contract as defined in this section, or any substantially similar analogue. "Possession" shall also include delivery of certificated digital securities consistent with section 28-8-301(1)(a), Idaho Code.

(7) "Private key" means a unique element of cryptographic data or any substantially similar analogue that is:

(a) Held by a person;

(b) Paired with a unique, publicly available element of cryptographic data; and

(c) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.

(8) "Virtual currency" means a digital asset that is used as a medium of exchange, unit of account, or store of value.

History:

[28-5303, added 2022, ch. 284, sec. 1, p. 902.]