A landmark decision by a Hong Kong court recognized cryptocurrencies as property, stating that they are “capable of being held on trust.”
A report by the legal firm Hogan Lovells stated that the case involves the now-defunct digital asset exchange Gatecoin where the presiding judge Linda Chan determined that cryptocurrencies inherently possess all the characteristics of the property.
The ruling brings Hong Kong’s recognition of the private nature of digital assets perfectly into line with a number of other common law jurisdictions, the report added.
On January 17, an English High Court held that a crypto asset such as Bitcoin is a form of property capable of being the subject of a proprietary injunction.
Not only crypto assets but NFTs which stand for non-fungible tokens have also been acknowledged as property according to a recent ruling by the Singapore High Court.
Last October, Justice Lee Seiu Kin declared that NFTs are property under the law if they meet specific criteria, including being different from other assets of a like nature and having an identifiable owner.
The judge’s ruling is crucial for investors and traders who will feel more secure wagering on these digital tokens now that their legal standing as property has been established.
In terms of Hong Kong, the city-state is vying to be a major global hub for the crypto industry.
According to a Bloomberg report, Hong Kong has taken a much more liberated approach and has hosted various crypto events in the city.
Interestingly Beijing is apparently supporting the development of its special administrative zone as a significant crypto center on a global scale.
Hong Kong And Singapore- Emerging Crypto Hubs
Although Beijing may not publicly endorse crypto assets, the nation covertly harbors desires to investigate the potential of digital assets and a view of the city’s laissez-faire attitude as an ideal setting for testing and experimenting.
Meanwhile, Hong Kong has also established a legal framework for the establishment of crypto exchanges with the VATP license. The new regulations will mandate trading firms to register with the Securities and Futures Commission [SFC] rather than outright forbid any particular operations.
Singapore is another key Asian contender, where interest in cryptocurrencies is still high despite Singapore’s strict licensing requirements.