Patrick Chan and Able Au write for Hong Kong Lawyer on cryptocurrency being recognised as property in a landmark ruling
Patrick Chan, Partner, and Able Au, Associate, write for Hong Kong Lawyer on the recent judgment of Re Gatecoin [2023] HKCFI 91.
The judgment 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, 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 in trust.
- Insolvency: the ruling that crypto assets are properties may affect how liquidators distribute these properties to clients during the winding-up process.
Read the full article in Hong Kong Lawyer here.
