• news-banner

    Expert Insights

Cryptocurrency recognised as property in landmark ruling

The recent judgment of Re Gatecoin [2023] HKCFI 91 made by the Court of First Instance in Hong Kong ruled that cryptocurrencies are proprietary assets, and claims can be pursued in case of violation of trust. This judgment reflects people’s growing awareness of the proprietary nature of cryptocurrencies and their importance in the financial sector. The case has significant implications for the treatment of cryptocurrencies and their legal status in Hong Kong. 

The case revolved around a dispute between the liquidators of the now-defunct cryptocurrency exchange platform – Gatecoin and its former clients over the ownership of digital assets held by the exchange in various cryptocurrency wallets. The Court finally held that cryptocurrencies satisfy the definition of “property” and their ownership can be traced, even if they have been mixed with other assets.

The decision builds on a prior interlocutory judgment in Nico Constantijn Antonius Samara v Stive Jean Paul Dan [2019] HKCFI 2718, which affirmed that cryptocurrencies have proprietary value and their legal status as property is analogous to other recognised types of property.

The legal implications of Re Gatecoin [2023] HKCFI 91 are substantial as the judgement affects the treatment of cryptocurrencies in multiple legal contexts, including:

  • Matrimonial: digital assets can possibly be traced and for determining whether they form part of the matrimonial assets.

  • Private wealth disputes: clients may be able to claim beneficial ownership over their digital assets and that the platforms are holding those assets on trust.

  • Insolvency: the ruling that crypto assets are properties may affect the way liquidators distribute these properties to clients during the winding up process.

While the rulings provide security for the stakeholders involved in cryptocurrencies transactions, they also pave the way for more comprehensive legal frameworks in the future to govern the use, trading, and storage of digital assets.

In gist, the court rulings that affirmed cryptocurrency as property is a landmark decision that recognises the legal rights of cryptocurrency holders and advances protection for digital assets. This case marks a significant milestone in fostering a secure environment for the development of digital assets in Hong Kong.

Our thinking

  • Internationally competitive? The post-April 2025 tax rules for non-doms / internationally mobile individuals

    Dominic Lawrance

    Insights

  • Charles Russell Speechlys welcomes two new Dispute Resolution Partners in Singapore

    Stewart Hey

    News

  • Avoiding a sticky wicket

    David Carver

    Quick Reads

  • A sign of the changing tides? The Rise of Women-Led Investment in Sport

    Molly Moseley

    Quick Reads

  • Hanh Nguyen, Hannah Edwards and Francesca Heath-Clarke contribute to the Legal Q&A section of R3 RECOVERY Magazine

    Hanh Nguyen

    In the Press

  • International Adviser quotes Dominic Lawrance on speculation that the UK is considering softening IHT rules on non-doms’ global assets

    Dominic Lawrance

    In the Press

  • Caroline Greenwell recognised in GIR’s ‘Women in Investigations 2025’ list

    Caroline Greenwell

    News

  • FCA Supercharged Sandbox, Encouraging AI Experimentation With NVIDIA

    Charlotte Hill

    Insights

  • When Artificial 'Intelligence' invents Artificial Cases - how to navigate AI use in civil law proceedings?

    Charlotte Posnansky

    Quick Reads

  • Arbitration for family offices

    Tamasin Perkins

    Insights

  • Behind the Curtain: Enforcing Contracts as an Undisclosed Principal in English Law

    Gareth Mills

    Insights

  • Reforms to the UK tax treatment of carried interest

    Alice Wilne

    Insights

  • Nuptial Agreements: Perspectives from England and Hong Kong

    Sarah Higgins

    Insights

  • Dubai chocolate craze and related allergen concerns in the workplace

    Jamie Cartwright

    Quick Reads

  • Dalal Alhouti and Robin Hayden write for The Oath on enhancing arbitration with AI

    Dalal Alhouti

    In the Press

  • HR Magazine quotes Jamie Cartwright on the Dubai chocolate craze and related allergen concerns in the workplace

    Jamie Cartwright

    In the Press

  • Business Assets in an English Divorce – How Can Parties Protect their Interests?

    Sarah Jane Boon

    Insights

  • Triple Play "Bid Fever": UK Tech's ability to scale and go global

    Mark Howard

    Quick Reads

  • A Family Lawyer’s guide to five of the top most Googled Family Law questions in England and Wales relating to divorce/separation

    Hannah Owen

    Quick Reads

  • The Future of AI and Copyright Regulation in the UK: The Data (Use and Access) Bill finally gets Lords approval in the UK

    Rebecca Steer

    Quick Reads

Back to top