The rationale for an insolvency regime for crypto custodians in the UK

Expanding the scope of the Investment Bank Special Administration Regulations

by Mariya Spiridonova

The crypto market is developing at an exponential speed and the UK government is in the process of bringing cryptoassets and related activities under the scope of regulation. Currently, the phase 1 focus is on regulatory measures for fiat-backed stablecoins to provide safer conditions for their custody but also for trading and issuing them, with a regulatory framework for custody of all other cryptoassets to be introduced soon after. Consequently, this article excludes fiat-backed stablecoins from the discussion, focusing on the regime for all other cryptoassets.