The Status of Crypto Assets in Codes of Debt Enforcement and Bankruptcy: The Swiss Example

Abstract

The legal status of cryptocurrencies is not yet clear. There is a need for regulation in Turkish law in this regard. The Swiss example of cryptocurrencies is discussed in this study. The regulations, which came into force in Swiss law in 2021, are intended to create a legal investment environment that includes various systems for crypto-assets. In this sense, many institutions of commercial law, substantive law as well as debt collection and bankruptcy law were used. One of the regulations that serves to create the investment environment prepared for cryptocurrencies is Article 242a of the Swiss Code of Debt Enforcement And Bankruptcy. In the Swiss Code of Debt Enforcement And Bankruptcy, the status of crypto currencies is not regulated separately in each ruling. It should therefore be noted that the legislature does not use a casuistic method when regulating crypto currencies. The focus is on the bankruptcy resolution dimension of the relationship between intermediaries and investors, which is an important element for safe investments in Swiss debt enforcement and bankruptcy law. Article 242a of the Swiss Code of Debt Enforcement And Bankruptcy deals with the segregation of crypto currencies in the bankruptcy liquidation of companies. Several different conclusions can be drawn from Article 242a. For example, except as provided in Article 242a, the law, like all property, subjects cryptocurrencies to bankruptcy. So cryptocurrencies are considered attachable. This article discusses the latest Swiss legal developments on the relationship between crypto currencies in bankruptcy liquidation.