In The Press June 01, 2022

UK Proposes New Insolvency Regime for Stablecoin Failures (Global Restructuring Review)

Insolvency practitioners have welcomed UK government proposals to introduce a regime to manage stablecoin failures, with one adviser telling GRR the move presents an opportunity for the UK to become a global leader in the crypto space. Goodwin Financial Restructuring partner Simon Thomas tells GRR it remains to be seen whether consultation between the regulators will be enough to protect consumers, alongside the implementation of the additional objective. “As the City jostles to be the global leader in crypto and [decentralised finance] DeFi, this is a wise move, especially in the wake of recent volatility in the cryptomarket,” he adds. “Stablecoins, by their nature, will benefit from having a framework that deals with an event of systemic DSA failure such that investors will have a higher degree of confidence in working out distressed crypto and DeFi situations using UK insolvency regimes,” says Thomas. Read the Global Restructuring Review article here.