The Hong Kong authorized and justice system has made a landmark ruling by recognizing cryptocurrency as property that may be “held on belief.”
The choice was reached in a lawsuit involving the now-defunct crypto alternate Gatecoin.
Based on the regulation agency Hogan Lovells — which reported the case on April 18 — Justice Linda Chan presided over the case and declared that Hong Kong defines “property” broadly, with a large which means that encompasses cryptocurrencies.
The ruling is according to comparable choices made in mainland China and the U.Okay. The U.S. Inside Income Service (IRS) additionally treats cryptocurrencies as property for tax functions.
Within the U.Okay., a government-funded regulation fee discovered that cryptocurrency will be categorized as a brand new sort of property underneath present legal guidelines in England and Wales.
Gatecoin case units
Gatecoin introduced its shutdown and liquidation in 2019 following an try and recuperate disputed funds from a former fee providers supplier.
Liquidators sought instructions from the courtroom on whether or not the crypto held by Gatecoin must be handled as property held on belief or if it must be made accessible to the final physique of collectors, in accordance with the Hogan Lovells report. The alternate held crypto valued at greater than $17.8 million in October 2022.
Though the courtroom acknowledged that cryptocurrencies may very well be held in belief, it finally decided {that a} belief had not been established within the Gatecoin case.
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