Hong Kong Court Recognizes Crypto as Property

In a recent case involving the crypto exchange Gatecoin, which has since closed, a Hong Kong court said that cryptocurrencies are property. In a recent blog, the law firm Hogan Lovells discussed the facts.

Governments all over the world need clarification about what cryptocurrencies are. The SEC has been trying to make it look like security, even though some call it a commodity.

Hong Kong Court View on Cryptocurrency

The court decided that cryptocurrencies are real property that can be held in trust. “Honorable Madam Justice Linda Chan, in Re Gatecoin Limited [2023] HKCFI 91, found that cryptocurrency inherently has all the attributes of the property but that in this case.”

In Mainland China, it has been decided that coins are property in the same way. Hong Kong recently agreed that cryptocurrencies are a type of “property” that is the same as stocks and shares. This puts the country in line with other common law countries, whose courts have already decided on this issue.

The country has been making it easier for people to use cryptocurrencies, intending to become a cryptocurrency hub.