Judge Philip Jeyaretnam placed crypto under the legal umbrella of "things in action."
The High Court of Singapore, under Judge Philip Jeyaretnam, has declared cryptocurrency to be property with the potential to be held in trust.
The groundbreaking ruling was handed down on July 25th, with the Judge finding no substantial difference between cryptocurrency, traditional fiat currency, or even shells — provided they all possess a shared value rooted in mutual trust.
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This decisive ruling was given in a legal dispute involving a cryptocurrency exchange ByBit and its former employee, Ho Kai Xin. ByBit alleged that Ho Kai Xin had illicitly transferred around 4.2 million Tether (USDT) from the company's accounts to the personal ones.
The court has since directed Ho, who blamed a non-present cousin for controlling the relevant accounts, to repay the entire amount to ByBit.
Judge Jeyaretnam's verdict had significant implications for the legal status of digital assets. He categorically defined the stolen USDT and other cryptocurrencies as property.
We identify what is going on as a particular digital token, somewhat like how we give a name to a river even though the water contained within its banks is constantly changing.
In doing so, he debunked the pervasive skepticism about cryptocurrency's "real" value, emphasizing that value is "a judgment made by an aggregate of human minds."
The Judge further placed cryptocurrency under the legal umbrella of "things in action," a concept in British common law that signifies property rights enforceable by legal action, as opposed to physical possession.
This ruling is significant in the context of Singapore's Rules of Court 2021, Order 22, which defines "movable property" to encompass "cash, debt, deposits of money, bonds, shares or other securities, membership in clubs or societies, and cryptocurrency or other digital currency."
The Singaporean High Court decision adds to a growing body of legal recognition for digital assets and offers new protections and possibilities for cryptocurrency enthusiasts worldwide.
