Bitcoin, an inalienable right – The regulatory environment is so crypto-friendly to hong kong that even Chinese state banks there gladly accept crypto businesses as customers. A Justice decision has just further strengthened the status of Bitcoin (BTC) and its ilk on the island. They are designated as numerical propertieswith all the rights that accompany this definition.
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Bitcoin and Cryptos Recognized as “Property/Property” in Hong Kong
This judgment follows the judicial closure of the Gatecoin crypto-exchange in March 2019. In a legal dispute between the defunct Hong Kong exchange platform and its injured customers, legal status of Bitcoin and cryptocurrencies was at the center of the debates.
This is an analysis from the law firm Hogan Lovells who deciphers this judgment which will be historic for the recognition of crypto-assets in Hong Kong. The story begins when the liquidators of Gatecoin asked whether cryptocurrencies held by the exchange should be considered owned in trust for customers, or whether digital assets should be made available of all creditors.
It turns out that Gatecoin’s 2018 terms and conditions are not customer-friendly. Because nothing clearly stipulated that the cryptos were held in trust. But this legal procedure will make it possible to sanctify the right of ownership on crypto-assets in Hong Kong. Because the conclusion of judge Linda Chan is without appeal as to the qualification of a cryptocurrency: it is a GOOD/a property (property).
There heritage nature of Bitcoin and digital assets is therefore now officially recognized on the small Chinese island. And Hong Kong joins in this other jurisdictions who also have recognized cryptocurrencies as private property.
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