On 17 April 2024, the UK Jurisdiction Taskforce (UKJT) published a comprehensive Legal Statement on Digital Assets and English Insolvency Law (the Statement), following a public consultation in December 2023. A multidisciplinary team from Clifford Chance responded to the original consultation.

The Statement constitutes a significant step towards legal clarity in the rapidly evolving area of digital assets and their treatment under English insolvency law. While the Statement is non-binding, it is influential in providing clarity to critical legal questions under English law. It provides useful guidance regarding the legal status of, and basic principles applicable to, cryptoassets, distributed ledger technology (DLT), smart contracts and associated technologies under English insolvency law.

The Statement will be of interest to mainstream investors and market participants considering investment strategy given the previous uncertainty in relation to the recovery of digital assets in an insolvency scenario.

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