The Legal Statement applies areas of insolvency law to digital assets, providing valuable guidance on the approach English courts will take.

By Bruce Bell, Stuart Davis, Gabriel Lakeman, Jessica Walker, and Tim Bennett

In October 2023, the UK’s Jurisdiction Taskforce (UKJT), which is made up of senior judges, lawyers, a law commissioner, and the Financial Conduct Authority as an observer, issued a consultation on the treatment of digital assets in an English insolvency. This has resulted in the issuance of a Legal Statement on Digital Assets and English Insolvency Law, in which the UKJT has concluded that existing English insolvency law is “entirely capable of convenient and sensible application to disputes concerning digital assets”. Although lacking any binding authority, the Legal Statement provides valuable guidance on the likely approach that the English courts will take to these issues.

While the outcome is in comprehensive support of compatibility, some elements of the analysis are likely to stimulate debate. The UKJT’s detailed consideration of the issues provides helpful guidance to the English insolvency market.

The UKJT considered the compatibility of digital assets with eight specific areas of English insolvency law. In this Client Alert, we have summarized its views on each area, together with our observations of what otherwise remains to be addressed.

Read the Client Alert.