Hong Kong’s legal and judicial system has made a landmark ruling recognizing cryptocurrencies as “trustworthy” property.
The decision was made in a lawsuit involving the now-defunct cryptocurrency exchange Gatecoin.
According to law firm Hogan Lovells: report April 18th Lawsuit — Judge Linda Chan presided over the lawsuit, declaring that Hong Kong defines “property” broadly and broadly to include cryptocurrencies.
The ruling is consistent with similar decisions made in mainland China and the United Kingdom. The U.S. Internal Revenue Service (IRS) also treats virtual currency as a tax property.
In the UK, a government-funded legal commission found that cryptocurrencies could be classified as a new type of property under existing law in England and Wales.
Gatecoin case set
Gatecoin announced its closure and liquidation in 2019 after attempting to recover disputed funds from its former payment service provider.
According to Hogan Lovells’ report, the liquidator has asked the court for direction on whether the cryptocurrency held by Gatecoin should be treated as trust property or made available to the general body of creditors. The exchange held cryptocurrencies worth over $17.8 million in October 2022.
The court acknowledged that cryptocurrencies may be trusted, but ultimately determined that trust was not established in the Gatecoin case.
Post Hong Kong court recognizes cryptocurrencies as assets in Gatecoin case, first appearing on CryptoSlate.
