Critically Analysing Insolvency of Virtual Digital Assets vis-à-vis a Cross-Jurisdictional Comparison.

Abstract

The emergence of crypto assets has become a harbinger of novel opportunities and complexities. The occurrence of insolvency in the crypto industry is one such complexity. Understanding the probable effects of insolvency on digital assets is crucial owing to the increasing popularity and usage of cryptocurrencies. Owing to the absence of any comprehensive legislation or judicial authorities concerning the specific subject matter in the country, it is to be noted that the present research article is an introductory study. Through this article, the authors aim to provide an overall view into the nature of virtual digital assets- whether they fall under the category of property or not for initiating insolvency and what the cross-jurisdictional progress is instead of the insolvency of these virtual digital assets. The aim is also to identify the several potential issues that might arise in the insolvency process of such virtual assets and what can be the possible solutions to overcome those hurdles.