A court sitting in Hong Kong has ruled that crypto assets are properties and can be held in trust. The ruling judge Judge Linda Chan gave this ruling in a case concerning defunct crypto exchange Gatecoin.
According to the judge, this is in line with thoughts in other jurisdictions that consider cryptocurrencies as properties. “Like other common law jurisdictions, our definition of ‘property’ is an inclusive one and intended to have a wide meaning,“ the judge said.
Hong Kong has been in the news a lot recently, and for good reason. The region is setting itself up to become a major destination for crypto investors and startups. With it’s robust crypto regulations, Hong Kong has succeeded in attracting many crypto companies to its domain.
With this ruling, cryptocurrencies will enjoy more legitimacy in Hong Kong and even beyond, as crypto assets are now given their rightful place. It could also be a green light for more crypto-related businesses to go to the region since the asset class now has legal backing.
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Crypto Enjoying Wider Acceptance
The ruling in Hong Kong today gives cryptocurrencies another layer of trust, making it acceptable in several jurisdictions. This is not the first time such ruling has come in favor of crypto assets.
According to the judge, the ruling is in line with those in other parts of the world that have already accepted cryptocurrencies as properties.
Even in mainland China where cryptocurrencies are not so popular, the asset class has been recognized as property that can be legitimately owned. The same goes for the U.S which up to now struggles with the issue of regulating crypto assets.
Although the U.S only considers cryptocurrencies as property for tax purposes, it is still a win as that gives the assets proper recognition. As more jurisdictions continue to recognize cryptocurrencies, it is likely that the industry will grow to take its place globally.
Crypto Becoming a Necessity
Apart from the legal backing that gives crypto assets legitimacy, they are also becoming popular out of necessity. In Russia for instance, the government is exploring ways to facilitate crypto transactions across borders. It became necessary as a result of the sanctions that restrict its citizens from sending and receiving money within the EU.
This is a country that was vehemently against crypto and all that it represents just a year ago. Also, citizens of countries that have been ravaged by inflation such as Turkey are also turning to crypto as a hedge against inflation.
Ultimately, cryptocurrencies will find their way to the hearts of people even if the ruling class does not approve of them, as long as they continues to provide solutions to the problems that affect human society.