Kirkland Assists the UK Jurisdiction Taskforce on Legal Statement Regarding Digital Assets Under English Insolvency Law

The official UK Jurisdiction Taskforce of LawTech UK (UKJT) has published a comprehensive Legal Statement on Digital Assets and English Insolvency Law, providing guidance to investors, practitioners and insolvency officeholders on the application of English insolvency law to digital assets.

The Legal Statement concludes, amongst other things, that digital assets fall within the definition of property in the English Insolvency Act 1986, and that proprietary rights can be retained to digital assets held by insolvent estates. A valid statutory demand cannot yet, however, be served in respect of a debt of a digital asset.

The UKJT is chaired by Sir Geoffrey Vos, Master of the Rolls, who issued the foreword to the Legal Statement; Lord Justice Snowden delivered the opening address at its launch. The UKJT brings together the judiciary, the Law Commission of England and Wales, regulators, and legal professionals. Its objective is to provide market confidence and a degree of legal certainty to promote the choice of English law in the context of emerging technologies.

Hannah Crawford, partner in Kirkland's London Restructuring team, was a member of the drafting team for the Legal Statement, alongside Lawrence Akka KC of Twenty Essex, David Quest KC of 3 Verulam Buildings, Rory Conway of Linklaters, Ryan Perkins of South Square, Alexander Riddiford of Essex Court, and Matthew Kimber of Matter Labs. Hannah also chaired a panel discussion at the launch event.