The continued fall-out of the high-profile collapse of the Three Arrows crypto fund has seen another development, with the BVI Court permitting alternative service by Twitter after the collapsed fund's directors failed to appear for examination before the BVI Court. [1]
Background
Several recent insolvencies of popular crypto fin-techs have shaken the crypto markets, eroding investors’ trust in digital assets in general and their future reliability.
The European Union's (EU) response is to implement new and clarify existing safeguards for investors to protect their property in the event of an insolvency. In this context, the Markets in Crypto Assets Regulation (MiCAR) is to be implemented throughout the EU.
Legislative changes
Der Entwurf des Gesetzes zur Finanzierung von zukunftssichernden Investitionen (Zukunftsfinanzierungsgesetz („ZuFinG“)) vom Bundesministerium der Finanzen („BMF“) und dem Bundesministerium der Justiz („BMJ“) führt nicht nur elektronische Aktien ein, sondern stärkt auch Kundenrechte bei Insolvenz von Kryptoverwahrern. Zukünftig normiert das Kreditwesengesetz („KWG“), wie Kryptoverwahrer das von ihnen verwahrte Kundenvermögen schützen müssen und was mit dem verwahrten Kundenvermögen bei einer Insolvenz des Kryptoverwahrers passiert.
ISDA argued the need for clarity in rules that govern the ownership of customer digital assets in the event of an intermediary’s insolvency.
Introduction
The law is constantly developing to fit the ever-changing world. Most recently, with the digitalisation of the commercial landscape and the proliferation of cryptocurrencies, NFTs and metaverse-related businesses, the courts have had to apply or adapt the law to deal with novel situations. This was the case in Re Babel Holding Ltd and other matters [2023] SGHC 98, where the Singapore High Court had to apply restructuring and insolvency law in the context of a cryptocurrency-related business.
The Hong Kong High Court has found that cryptocurrencies are property in a landmark case, further boosting the city’s virtual asset industry and its ambition to become the Asian crypto hub.
Following are our summaries of the civil decisions of the Ontario Court of Appeal for the week of April 24, 2023.
In Re Zipmex Pte Ltd and other matters [2023] SGHC 88, the Singapore High Court imported into the Singapore restructuring regime the US concept of an "administrative convenience class" in a scheme voting exercise. This concept allows debtors to obtain an approval from a large number of low value creditors without those creditors being involved in the voting exercise. This reduces the administrative burden on restructuring entities.
IAIS launches climate risk training materials for insurance supervisors
According to a press release published on April 5th, 2023, the International Association of Insurance Supervisors (IAIS) and the Financial Stability Institute jointly launched new online training materials on climate risk for insurance supervisors.
Although it’s inaccurate to say that the Chinese character for “crisis” combines the characters for danger and opportunity, the thought has resonated since President Kennedy repeatedly used this trope in his presidential campaign speeches.