The most exciting decision lit the hope of multiple other common law jurisdictions in acknowledgement of the proprietary future of digital assets. What you might see as a theory is now a law.
The declared decision will be very helpful in planning the trust arrangements related with cryptocurrency and being a property of its further passage or extent from deceased to beneficiary. But, this ruling moreover differs Hong Kong from China as cryptocurrencies are not widely protected there.
The Next Big Thing – Will Hong Kong Turn into a Crypto Hub now?
Hong Kong is one country with two systems, however the official approval of this law from Beijing’s official confirms a boost in this sector, enabling it to become a leading crypto hub.
Cryptocurrency will now be considered as ‘virtual currency’ in Hong Kong.
This certainly instills confidence in the sector and the technology. The lawyers claim a significant boom due to cryptocurrency could be witnessed in the city in the near future.
China is an economic juggernaut and is actively experimenting with digital currency. This move bodes well not only for Hong Kong’s economy, but the global economy as well.
Counties will closely observe how this change unfolds to learn lessons for domestic laws on digital currencies.
After so many years of struggle, it was noted by Honourable Madam Justice Linda Chan that cryptocurrency has all the features of a ‘property’ as she declared the law.
Hence, with the new declaration that cryptocurrency is property in Hong Kong the crypto market, which is global, is likely to absorb it as long-term good news. After the announcement of this law.
“The Court Rules for the First Time, Bolstering City’s Effort to Promote Industry.” Regulating crypto will now be easier and simple.
Earlier, Hong Kong officials had ordered Gatecoin platform to stop its operation in the city. It is due to this reason that the exchange had overleaped to provide liquidation after losing assets during a disagreement with its service provider.
Because of the above reason, the customers asked the court to determine the ownership of the crypto asset that remains in the exchange account to find out whether the asset belonged to Gatecoin or to the customers.
Justice Linda Chan emphasized that cryptocurrency is considered inheritable property.
Source: https://www.thecoinrepublic.com/2023/04/26/crypto-craze-now-cryptocurrency-is-property-in-hong-kong/