Singapore High Court Recognizes Crypto as a Property Held in Trust
The Singapore High Court has made a significant legal recognition by declaring that cryptocurrency can be held in trust. This recognition came as a result of a case involving the exchange Bybit and a contractor named Ho Kai Xin. Bybit accused Ho of breaching her employment contract by misusing her position to transfer funds to addresses under her control.
Here are the key points from the case:
1. Crypto as Property: The judge ruled that cryptocurrency, specifically USDT, can be held on trust, similar to any other asset. This ruling aligns with the possibility of identifying and segregating digital assets, as indicated by the Monetary Authority of Singapore.
2. Incorporeal Right of Property: The judge acknowledged that holders of crypto assets possess an incorporeal right of property, recognized under common law. This right is enforceable in court and is comparable to how money is treated by the law.
3. Value Relies on Acceptance: The judge emphasized that the value of crypto assets, like any other object, depends on the acceptance of their exchange value by people. This highlights the subjective nature of the value of cryptocurrencies.
4. Finger Pointing: Bybit sought a declaration that Ho was holding the assets on trust, while Ho blamed her cousin Jason Teo for stealing the assets. However, evidence suggested that Jason may not exist or did not play the role claimed by Ho.
In conclusion, the Singapore High Court’s recognition of cryptocurrency as a property held in trust is a significant development. This ruling provides legal clarity for crypto holders and establishes a precedent for future cases involving the ownership and transfer of digital assets.
Hot Take: A Milestone for Crypto Trust
The Singapore High Court’s decision to recognize cryptocurrency as a property held in trust is a significant milestone for the crypto industry. This ruling not only provides legal protection for crypto holders but also establishes the legitimacy of digital assets in the eyes of the law. It also highlights the need for proper regulations and measures to safeguard the ownership and transfer of cryptocurrencies. As the crypto landscape continues to evolve, more jurisdictions may follow suit and provide similar legal recognition, further solidifying the position of cryptocurrencies in the global financial system.
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