Feature

Going cashless: the treatment of cryptoassets in insolvency proceedings

The transaction volume of cryptoassets and associated products has witnessed rapid expansion, with recent reports indicating that the cumulative market value for cryptocurrencies alone has now exceeded $3trn. This growth has, in turn, increased the likelihood of both cryptoasset-related businesses (such as exchanges and custodian wallet providers) entering into formal insolvency processes, and cryptoassets featuring within insolvency proceedings. Accordingly, this article considers how cryptoassets are treated within English insolvency law, focusing on their classification as property, jurisdictional issues arising from their decentralised nature, the enforcement of security interests, and the challenges of valuation and distribution.

Joining the dots: a wider use for AML e-verification tools?

Everything is electronic nowadays. Globalisation, technology and Covid have all played a significant part in driving legal changes that mean it is rare not to be able to sign documents, open bank accounts or indeed do most things using just a keyboard or a click. But can established processes help to mitigate the risks of more newly permitted e-signatures? This article looks at how anti-money laundering identity verification processes can help with verification of document signatories.

Does the restoration of Crown preference mean that guarantors can get off the hook?

When the economic landscape changes, people often look to wriggle out of their financial commitments. Just such a change occurred in 2020, when HMRC’s status as a preferential creditor of insolvent companies was restored.

ETFs: could crisis be looming?

Exchange traded funds, or ETFs, are one of the most successful financial innovations in the modern era; of similar vintage and, arguably, significance to mortgage-backed securities, but to date thankfully not (yet) as contorversial. 

This article looks at their key features, contextualises their inexorable rise by reference to some performance figures and, by reference to two examples of their higher risk synthetic variants, leveraged and inverse ETFs, highlights both the potential systemic risks they pose to the stability of global financial markets and regulators’ preparedness to address those risks.  

Merricks v Mastercard: the litigation risks for the financial services sector

The recent decisions in the Merricks v Mastercard  litigation will most obviously have a significant impact on the competition class actions regime, but may also have repercussions for the wider litigation landscape, particularly in relation to mass consumer claims. In this article, we consider the potential litigation risks for the financial services sector.

Bridging the gap: high yield bridge loans in leveraged buyouts

In this article the authors examine the key features of high yield bridge loan documentation and latest trends in the leveraged buyout market.

The approaches of different jurisdictions to the legal recognition and enforceability of electronic signatures

In this article, Annabel Akintomide considers the approaches of different jurisdictions to the legal recognition and enforceability of electronic signatures and the key themes that emerge.

The role of the sustainability co-ordinator in sustainability linked loans

In this article the authors consider how the increasing prominence of sustainability linked loans has afforded new opportunities for banks to take on the role of sustainability co-ordinator and take a closer look at what this role entails.

Wholesale Markets Review: an enhanced, tailor-made regime for UK markets

In this article, Elisabeth Øverland considers the principal proposals included in HM Treasury’s recent consultation on wholesale markets regulation – the Wholesale Markets Review.

Unravelling the Travel Rule: AML requirements for cryptoasset businesses

The Financial Action Task Force (FATF) recently updated its guidance for Virtual Assets and Virtual Asset Service Providers (VASPs) in October 2021 including on its Recommendation 16 that certain transfers of cryptoassets must be accompanied with identifiable originator and beneficiary information. The application of Recommendation 16 to VASPs has caused controversy, as it is regarded as being very difficult to comply with by the industry. This article explores whether the proposed implementation of the Travel Rule in the UK addresses any of the commonly cited practical difficulties with compliance (which are particularly pronounced for unregulated firms or start-ups that may be unaccustomed to being scrutinised in this way) in light of the most recent guidance.