Recent High Court Judgments Demonstrate Adaptability of English Law to Blockchain and Cryptocurrency Commercial Disputes

9 May 2022
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Key takeaways:
  • Blockchain developers do not owe fiduciary or tortious duties to those who use their networks to store or trade crypto assets.
  • Bitcoin is not currently suitable for security for costs due to the high level of volatility in its value. However, the court has left the door open for less volatile cryptocurrencies or central bank digital currencies to be used as permissible forms of security.
  • The English Court is willing to grant a number of remedies in relation to cryptocurrencies, such as third-party debt orders and freezing orders.
  • Contracts under which parties agree to a reciprocal cryptocurrency swapping structure do not give rise to a trust, though on different facts, a trust over cryptocurrency may arise.