Features of virtual asset service provider bankruptcy

The article is aimed at analysing and specifying the peculiarities of bankruptcy of a virual assets service provider. The author concludes that a number of peculiarities of bankruptcy of such business entities should be provided for at the legislative level. It is of particular importance to note that the property manager, rehabilitation manager, and liquidator of service providers related to the turnover of virtual assets should carry out the relevant activities on the basis of a permit. Furthermore, the authority to issue such a permit should be vested in the virtual assets market regulator. It can be concluded that the regulator's significant involvement in the bankruptcy proceedings of virual assets service provider can be of considerable benefit, since it will strengthen the state's control over compliance with the law. Therefore, it is proposed that the regulator of the virtual assets market should be involved in the bankruptcy proceedings of virual assets service provider. It is proposed that a provision be established which would exempt from the liquidation estate of the service provider any virtual assets belonging to clients of the service provider which are in the possession, use or disposal of the service provider. At the same time, virtual assets owned by the debtor itself will be included in the liquidation estate. In view of the potential liquidity risk associated with the provider of services related to the circulation of virtual assets, it seems prudent to propose that, in the event that the clients' claims for the return of virtual assets exceed the total number of such assets, the return shall be proportional, with each client receiving an amount corresponding to the proportion of the total claims they represent. The implementation of the aforementioned proposals will facilitate the enhancement of the bankruptcy institution's functionality, taking into account the distinctive characteristics of a virual assets service provider. Nevertheless, this analysis does not encompass the entirety of the complex legal issues pertaining to this subject, and further research is necessary to address these remaining concerns.

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