Valuation of cryptoassets in EU insolvency: Challenges and prospects

Abstract

How and when to determine the value of cryptoassets in insolvency proceedings? This question becomes more topical with the increasing adoption of volatile cryptoassets such as Bitcoin. As many of these assets do not have an ‘apparent’ value that may be readily ascertainable, it is not always clear how their value may be established. This presents significant challenges to their proper valuation in the context of insolvency proceedings and requires certain attention to efficiently confront the implications on the assessment of claims, the calculation of their value and the determination of the recoverable amount. Accordingly, this Article exposes the arising challenges and implications from an EU insolvency perspective, with the aim to trigger considerations for legislative interventions at EU level.

Crypto-asset regulatory landscape: a comparative analysis of the crypto-asset regulation in the UK and Germany

“…Despite the UK's concerted efforts to incorporate AML and CFT regulations into the crypto-asset sector, several challenges persist. Notably, the pseudonymous nature of many cryptocurrencies presents difficulties in ascertaining the true identity of users engaged in transactions (Kostoula 2023). Furthermore, the global and decentralized nature of crypto-asset exchanges can result in discrepancies in regulatory enforcement across jurisdictions.…”