The UK Insolvency Service has taken a significant step to address the challenges of digital assets by selecting its first cryptocurrency intelligence specialist.
Through this strategic recruitment, the government agency demonstrates its commitment to successfully tracking and recovering cryptocurrencies for creditors in insolvency proceedings, in an environment where digital assets are becoming increasingly prevalent.
The Service has appointed Andrew Small, a former police investigator with a strong track record, to lead this new function. Small will focus on criminal cases, using his expertise to manage the complexity of digital assets. The Service recognises its key role in asset recovery for creditors and the growing need for specialist knowledge in this area.
The significant increase in cryptocurrency-related insolvency cases demonstrates the crucial importance of this role. The identification of cryptocurrencies as recoverable assets by liquidators has increased by 420% in the last five years to 59 cases. The most striking figure is the exponential increase in the appraised value of crypto assets, which has grown to 364 times its initial value, reaching around £520,000 (approximately $700,000).
Andrew emphasised the nature of cryptocurrencies as recoverable assets and explained that his experience will support the agency with in-depth knowledge of the different types of crypto assets and the technologies used to buy, sell and store them. His appointment will enhance the Insolvency Service's ability to handle cryptocurrency transactions and related storage methods.
"Cryptocurrencies are absolutely recoverable assets, and my role will help the agency by providing expert knowledge of the various types of cryptocurrencies that exist and the technologies associated with their purchase, sale and storage," Small said.
This development is part of a wider effort by the UK to strengthen its regulatory framework for digital assets, in a sector that continues to gain popularity. Research by the Financial Conduct Authority (FCA) has revealed that cryptocurrency ownership among UK residents has increased significantly, from 2.2 million in 2021 to 7 million in 2024.
In response to this growth, the country has begun publishing draft legislation and consultation papers aimed at developing a comprehensive regulatory system for the crypto sector. The Insolvency Service's decision to hire a cryptocurrency intelligence specialist shows how the UK is actively integrating digital assets into its financial and legal recovery systems.
