“CATCH ME IF YOU CAN!” – LEGAL STATUS OF DIGITAL ASSETS IN BANKRUPTCY PROCEEDINGS IN THE REPUBLIC OF SERBIA

Abstract

The very emergence of digital assets represents a revolutionary phenomenon in technology, economics, and law. Their regulation introduces into the legal system a new institute of property law, whereby digital assets, alongside things, rights, and legitimate expectations, become objects of property rights. Since digital assets represent a certain, although often fluctuating, asset value, and since the property of every person constitutes security for the settlement of creditors’ claims, it is important to ensure adequate protection of creditors’ rights and interests within the legal framework. This is particularly important in the context of collective settlement of creditors’ claims in bankruptcy proceedings. In 2020, the Republic of Serbia adopted a law regulating digital assets, their subject matter, issuance, trading, and pledging. Holders of rights relating to digital assets may be both natural and legal persons. Bearing in mind that Serbian legislation recognizes bankruptcy proceedings only in relation to legal entities, attention will be focused on the digital assets of legal entities as subjects of bankruptcy proceedings. It is in the interest of their creditors to achieve successful settlement of claims against the debtor’s assets. The authors of this paper analyze the reform of Serbian legislation in this high-tech field and point to possible shortcomings in the treatment of digital assets in bankruptcy proceedings and in the protection of creditors’ claims. They also recommend further development of the regulatory framework governing digital assets, including the professional training of relevant judicial professions. This paper employs the normative method, comparative law method, and statistical method.