Shortcomings in the Tracing of Digital Assets in the EU’s Insolvency III Directive

This paper examines whether the brand-new EU Directive harmonising certain aspects of insolvency law (Insolvency III) with its Title III on asset tracing is fit for the digital age and whether it offers adequate tools for the tracing of digital assets, such as crypto-assets under the EU Markets in Crypto-assets Regulation (MiCAR). The study will demonstrate that Title III on asset tracing has been outdated since the inception of the Insolvency III as it has a ‘blind spot’ on tracing digital assets.