Landmark Ruling in Hong Kong Deems Crypto Property

VICTORIA CITY, HK – In a landmark ruling, a Hong Kong court has recognized cryptocurrency as a property “capable of being held in trust.” The decision was made in a case involving the shuttered crypto exchange Gatecoin.

Justice Linda Chan stated that Hong Kong, like other common law jurisdictions, defines “property” broadly and “intended to have a wide meaning.” The move puts Hong Kong in line with similar rulings in mainland China, where cryptocurrency has also been recognized as property. 

The case involving Gatecoin dates back to 2019, when the Hong Kong-based cryptocurrency exchange announced its closure and liquidation following a failed attempt to recover disputed funds from a former payment services provider. The liquidators sought directions from the court on whether the crypto held by Gatecoin should be treated as property owned on trust.

Recognizing cryptocurrency as property in Hong Kong is a significant milestone that sets a precedent for future cases involving digital assets.