Cryptocurrency and Statutory Demands

As cryptocurrency transactions become increasingly common, the English courts are beginning to rule on the use of cryptocurrency in transactions and in particular, on whether a payment in cryptocurrency can form the basis of a statutory demand.

Recently, the UK Jurisdiction Taskforce (UKJT) clarified that although cryptocurrencies are capable of being property, a claim for the delivery of certain digital assets does not constitute a debt for a fixed sum.

Therefore, as cryptocurrency is not legal tender in the UK, it cannot be used as the basis for a statutory demand.