Unclaimed Property is a term used when the rightful owner of property is not known and the laws and regulations pertaining to the and distribution of the property. Since cryptocurrencies are included in the definition of property by most jurisdictions in the world, cryptocurrency is also subject to unclaimed property laws.
How Long Until Property Considered Abandoned?
The specific answer to this question depends on the laws applicable in the region and the type of property in question. In terms of property left by a tenant, it is considered to be 30 days where the Tennent has been absent without explanation. However, for bank accounts and cryptocurrency accounts, it can be inactivity for a period of 365 days or longer.
Revised Uniform Unclaimed Property Act (RUUPA)
UUPA brought forth virtual currency in its definition of property that is subject to unclaimed property laws
As of this writing, there are nine states who have enacted RUUPA or some form thereof, where virtual currency is a property type specifically defined in the statute.
There are three additional states where forms of RUUPA have been introduced. Additionally, there are several states that are requiring or recommending the reporting of virtual currency without the adoption of RUUPA.
Many of the states today cannot accept submission of the virtual currency and require liquidation prior to reporting.
Reporting Cryptocurrency as Unclaimed Property
Most states require the reporting of unclaimed property and cryptocurrencies now fall into this general definition. For owners of any type of digital asset custody services, they will have a direct legal obligation to the owner and to the state to report and liquidate as per the requirements for that jurisdiction.