Hong Kong has set a precedent for allowing cryptocurrencies to be viewed as property. This digital asset recognition was officially recorded during a court review of the details of the liquidation of cryptocurrency exchange Gatecoin. This was announced by law firm Hogan Lovells. Justice Linda Chan said that cryptocurrencies fall under this definition because they have the characteristics of assets. Court counsel also took into account similar comments from courts in other jurisdictions. Notably, the UK High Court issued a similar ruling in 2020. Hogan Lovells lawyers say the decision will bring greater clarity to Hong Kong's digital asset regulatory process. This creates favorable conditions for further establishing local jurisdiction as a major regional crypto hub promoted by mainland Chinese authorities. It is worth noting that late last year, a Chinese court ruled that his NFTs were virtual property and outlined a legal framework to regulate his NFT market there. A similar decision was made indirectly when the United States Court for the Southern District of New York accepted a class action lawsuit against Dapper Labs.
