Hong Kong Judge Rules Crypto Assets as ‘Property,’ Following Similar Rulings Worldwide

In a tribunal lawsuit linked to the now-defunct crypto speech Gatecoin, a Hong Kong justice has ruled that cryptocurrencies are “property” which is “capable of being held connected trust.” According to the instrumentality steadfast Hogan Lovells, this lawsuit should supply greater clarity to insolvency practitioners and different communal instrumentality jurisdictions.

Hong Kong Judge Designates Crypto Assets arsenic ‘Property’ That Can Be ‘Held connected Trust’

According to a summary of the ruling published connected April 18, 2023, justice Linda Chan successful Hong Kong has classified crypto assets arsenic “property.” The determination was made successful transportation with the Gatecoin crypto speech liquidation tribunal lawsuit from 2019. Law steadfast Hogan Lovells opines that this determination provides clarity to officials, regulators, and different communal instrumentality jurisdictions. In the United States, determination is presently a statement successful Congress astir whether definite crypto assets should beryllium classified arsenic securities oregon commodities.

At the opening of the Gatecoin liquidation process, liquidators had trouble determining whether crypto assets constituted a signifier of property. According to the Hogan Lovells summary, justice Chan has defined crypto assets arsenic a benignant of spot that tin beryllium “held connected trust.” Hogan Lovells notes that this ruling “should supply greater clarity to Hong Kong insolvency practitioners regarding the quality and scope of a company’s integer assets successful a winding-up scenario.” The instrumentality steadfast adds:

The confirmation that holdings of cryptocurrencies represent ‘property’ that is connected a par with different intangible assets specified arsenic stocks and shares, brings Hong Kong into enactment with different communal instrumentality jurisdictions whose courts person already decided the issue.

Judges successful assorted tribunal cases astir the satellite person issued akin rulings. For example, past year, an intermediate tribunal successful Beijing, China ruled that virtual spot is protected by Chinese law. Additionally, China’s Supreme Court has recommended expanding the ineligible extortion of spot rights that see crypto assets and virtual property. Research indicates that most countries see virtual currencies arsenic property, portion others and regulatory agencies person yet to marque a decision.

What are your thoughts connected the classification of crypto assets arsenic “property” by Judge Chan successful Hong Kong, and however bash you deliberation this ruling volition interaction the attraction of crypto assets successful insolvency cases and different communal instrumentality jurisdictions astir the world? Share your thoughts astir this taxable successful the comments conception below.

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