In a landmark ruling, Hong Kong’s High Court declared crypto as property that can be held in trust. This marks the first time such a decision regarding asset class has been made in the city-state.
The ruling, which was handed down in liquidation of a case involving the now-defunct crypto exchange Gatecoin, essentially puts crypto on par with other intangible assets such as stocks and bonds.by London-based law firm Hogan Lovells earlier this week. The report stated that Justice Linda Chan, who presided over the Gatecoin case, found that crypto “inherently” has all the attributes of property.
“Linda Chan J noted that “like other common law jurisdictions, our definition of ‘property’ is an inclusive one and intended to have a wide meaning.” The court felt it appropriate to apply and follow the lines of reasoning adopted in other jurisdictions that cryptocurrency was “property” and was capable of forming the subject matter of a trust.”
The latest ruling is in stark contrast to the status of crypto-assets in the United States which continues to remain ambiguous. A major government agency – Securities and Exchange Commission – views most crypto assets as securities diverging from the viewpoint of the Commodity Futures and Trading Commission , which considers Bitcoin and Ether to be commodities.the world’s first comprehensive framework for crypto – Markets in Crypto Act .