When it comes to cryptocurrencies, governments across the world have been confused about their true nature. While some brand it as a commodity, the SEC has been trying to frame it as a security.
In one of the recent court rulings involving the now-closed crypto exchange Gatecoin, a Hong Kong court has recognized cryptocurrencies as property. The details were shared by the law firm Hogan Lovells in one of their recent blogs.
Hong Kong court says cryptocurrencies can be held on trust
The court ruling concluded that cryptocurrencies are properties that are capable of being held in trust. According to the details: “Honorable Madam Justice Linda Chan, in Re Gatecoin Limited  HKCFI 91, found that cryptocurrency inherently has all the attributes of property but that in this case.”
Similar considerations of cryptocurrencies as property have been ruled in Mainland China. Hong Kong’s recent recognition of cryptocurrencies as a form of “property” that is equivalent to other intangible assets, such as stocks and shares, aligns it with the stance taken by other common law jurisdictions, whose courts have already ruled on this matter.
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Hong Kong has been making positive moves toward the adoption of cryptocurrencies with the intention of becoming a cryptocurrency hub.