DLA Piper is pleased to announce the release of a special report titled "Cryptocurrency and its impact on insolvency and restructuring." The firm prepared the report on behalf of INSOL International, a global federation of national associations for accountants and lawyers who focus on turnaround and insolvency.
Richard Chesley, global co-chair of DLA Piper's Restructuring practice, prepared the report with associate Malithi Fernando, with contributions from DLA Piper lawyers around the world.
The report found that there has been a rise in the number of insolvency proceedings comprising some form of cryptoasset, and that the rise in the use of cryptocurrencies has begun to create difficulties for the administration of bankruptcy cases, requiring bankruptcy courts to consider creative interpretations of existing insolvency regulations.
According to the report, current regulatory and legislative frameworks around the world have not fully realized the complexities of cryptocurrencies and the need for a sophisticated legislative regime, which will likely impede the future growth of the cryptocurrency market.