The Hong Kong High Court has declared cryptocurrency to be property, the  first time such a ruling has been reached in the city-state.

After its collapse in March 2019, Gatecoin’s liquidators requested  judicial assistance on whether the cryptocurrency it still held belonged  to clients “on trust” or might be distributed to general creditors.

Cryptocurrencies held on trust are those that, in the case of  liquidation, benefit certain clients. In the case of Gatecoin, the  crypto would be held in a fiduciary capacity, with the exchange in  charge of custody and management before being returned.

According to Hogan Lovells, Hong Kong now aligns with other common law  countries since it has been confirmed that holdings of cryptocurrencies  are “property” that is on par with other intangible assets like stocks  and shares.