A Hong Kong court has declared that cryptocurrencies are property and can be held on trust, in a landmark ruling. The decision, made by Madam Justice Linda Chan in Re Gatecoin Limited, found that cryptocurrency inherently has all the attributes of property.
The ruling should give Hong Kong insolvency practitioners greater clarity as to the nature and breadth of a company's digital assets in a winding-up scenario. The confirmation that holdings of cryptocurrencies constitute "property" that is on a par with other intangible assets such as stocks and shares, brings Hong Kong into line with other common law jurisdictions whose courts have already decided the issue.
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Policy and Regulation