The continuous rise in popularity and value of cryptocurrencies are practically forcing society to take digital coins as seriously as possible. That seems to be the deal when a Hong Kong court decided to recognize crypto as property.
According to Blockworks, crypto has been classified as property in the Chinese region of Hong Kong. It all happened during a case about digital assets that were owned by Gatecoin. The decision has marked a premiere, as Hong Kong has never before taken such a decision when it comes to digital assets.
Global firm Hogan Lovells, which has offices in over 45 countries of the world, released the following statement, as Blockworks quotes:
The confirmation that holdings of cryptocurrencies constitute ‘property’ that is on a par with other intangible assets such as stocks and shares, brings Hong Kong into line with other common law jurisdictions.
Hong Kong’s High Court recognized cryptocurrencies as property in a landmark ruling, stating that crypto has all the characteristics of property and is capable of being held on trust. The decision came as part of a case involving the liquidation of Gatecoin, which had been instructed to cease operations and undergo liquidation. While other regulatory agencies classify crypto differently, Hong Kong’s decision brings it in line with other common law jurisdictions and could help revive the city-state’s image as a hub for digital assets.
Gatecoin was a cryptocurrency exchange that had its location in Hong Kong. It was founded ten years ago in 2013, and entered into voluntary liquidation six years later because of financial difficulties. Furthermore, it subsequently ceased trading.
Estimates from the Hong Kong Special Administrative Region Government show that the population of Hong Kong is approximately 7.5 million people.
Hong Kong is located on the southern coast of China, with a total area of around 1,108 square kilometers (427 square miles). However, the population density of Hong Kong is very high, with an average of around 6,782 people per square kilometer.
