The Rise Of Cryptocurrency: Trustees' Powers, Obligations, And Responsibilities

Despite their volatility and lack of government endorsement, cryptocurrencies have become increasingly adopted by the mainstream in recent years. Many wealthy families already hold cryptoassets as part of their estates, and those who don't are often enticed by the impressive returns flaunted in the media. However, the lack of a well-defined regulatory environment poses real challenges for trustees who are asked to consider incorporating crypto investments into the trust portfolio, or to hold a settlor's crypto assets on trust.

A beneficiary of a trust may be keen to see trust assets invested into the digital sphere through cryptocurrencies. As a trustee, an important first step before making any investments would be to review the investment management powers and duties under the terms of the trust deed, as well as any obligation imposed under statute or general law which applies when trustees buy, sell or manage a particular type of asset. Following Re Whiteley,