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

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.