Non-statutory trusts are legal arrangements that do not derive their existence or specific characteristics from a particular statute but are instead established through common law principles or specific trust instruments. These trusts provide a flexible framework for managing assets for beneficiaries, often used for estate planning or asset protection. In the digital asset context, they can be adapted to hold and administer cryptocurrencies or other tokens.
Context
The application of non-statutory trusts in the digital asset space is an evolving area, offering potential solutions for the inheritance, management, and long-term holding of cryptocurrencies. Discussions often involve the legal enforceability of such trusts for digital assets, the identification of trustees, and the tax implications for beneficiaries. Future developments will likely see clearer legal precedents and specialized trust structures designed to accommodate the unique characteristics of blockchain-based assets.
The FCA's new consultation mandates full, segregated backing for qualifying stablecoins and non-statutory trusts for custody, fundamentally restructuring UK digital asset risk architecture.
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