Hong Kong Court Ruling: Cryptocurrencies Can Now Be Held On Trust
- Hong Kong court recognizes cryptocurrencies as property equivalent to stocks and shares.
- Similar considerations of crypto as property have been ruled in Mainland China.
Hong Kong court recognizes cryptocurrencies as property equivalent to stocks and shares, making positive moves towards adopting cryptocurrencies.
Cryptocurrency has been a topic of confusion among governments around the world. While some consider it a commodity, others believe it should be classified as a security. Recently, a Hong Kong court recognized cryptocurrencies as property, a promising development for the cryptocurrency community.
The court ruling concluded that cryptocurrencies have all the attributes of the property and are capable of being held in trust. This ruling is in line with similar considerations of cryptocurrencies as property in Mainland China.
“A Hong Kong court has for the first time declared that cryptocurrencies are property and capable of being held on trust. In a landmark ruling, the Honourable Madam Justice Linda Chan, in Re Gatecoin Limited  HKCFI 91, found that cryptocurrency inherently has all the attributes of property but that in this case.”Stated in a blog post
Hong Kong’s recognition of cryptocurrencies as a form of “property” equivalent to other intangible assets, such as stocks and shares, aligns it with the stance of other common law jurisdictions, whose courts have already ruled on this matter.
This recognition of cryptocurrency as property has significant implications for the cryptocurrency market. Cryptocurrency investors can now hold their assets in a trust, which provides them with legal protection. Additionally, this ruling could pave the way for more institutional investors to enter the market, leading to increased crypto adoption.
Hong Kong has been moving positively towards adopting crypto, intending to become a cryptocurrency hub. This recent court ruling is a step towards achieving that goal. This recognition of crypto as property provides legal clarity and certainty, which is crucial for the growth and development of the cryptocurrency market.
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