A Hong Kong-based court has recognized cryptocurrencies as custodial property in a ruling involving defunct cryptocurrency exchange Gatecoin.
Judge Linda Chan reportedly stated that cryptocurrencies have property attributes in her analysis of the ruling issued by law firm Hogan Lovells. The Court found it appropriate to follow the reasoning applicable in other jurisdictions that cryptocurrencies are property and may form the subject matter of Ch. pointed out:
"Like other common law jurisdictions, our definition of 'property' is inclusive and intended to have a broad meaning."
According to Hogan Lovells, the new ruling may give Hong Kong insolvency practitioners more clarity when it comes to digital assets. Confirming that cryptocurrencies constitute property similar to other assets such as stocks brings Hong Kong in line with other ve jurisdictions. based cryptocurrency exchange Gatecoin, which was hacked in 2016 and lost about $2 million in digital assets. In March 2019, the exchange announced that it had received a compulsory liquidation order from a Hong Kong court.
In the United States, the IRS considers cryptocurrencies as property for federal tax purposes. This means that the same principles that apply to property transactions apply to transactions using cryptocurrencies. At the same time, the court also recognized that cryptocurrencies of Chtyna are the pro As early as 2019, a judgment issued by the Hangzhou Internet Court recognized Bitcoin as legally digital property. As Hong Kong pushes forward with its goal of becoming a global crypto hub, China's state-owned banks are taking the opportunity to form partnerships regulated and Crypto firms in Hong Kong. The incident occurred despite China's ban on crypto-related activities.
