• The High Court of Singapore recently ruled that cryptocurrency is legally capable of being held in trust.
• The ruling came after a case was brought by Bybit against its former employee who allegedly transferred around 4.2 million of Tether (USDT) from the crypto exchange to her private accounts.
• Judge Philip Jeyaretnam compared the value of crypto, fiat money and shells, stating they all share mutual faith and value created by human minds.
Cryptocurrency Legally Recognized as Personal Property
The High Court of Singapore recently ruled that cryptocurrency is legally capable of being held in trust. This ruling was handed down by Judge Philip Jeyaretnam in a case brought by Bybit against its former employee who allegedly transferred around 4.2 million of Tether (USDT) from the crypto exchange to her private accounts.
Comparison Between Crypto, Fiat Money and Shells
Judge Jeyaretnam compared the value of crypto, fiat money and shells, stating they all share mutual faith and value created by human minds. He classifies crypto in the category of “things in action” which means a type of property over which personal rights can be claimed or enforced without taking physical possession.
Monetary Authority Of Singapore Consultation Paper
The judge cited the consultation paper by the Monetary Authority of Singapore (MAS) that will implement segregation and custody requirements for digital payment tokens as an example which proves it is possible to identify and segregate such digital assets into trusts legally.
Order 22 Of Singapore’s Rules Of Court 2021
Order 22 defines “movable property” to include “cash, debt, deposits of money, bonds, shares or other securities, membership in clubs or societies, and cryptocurrency assets also fall under this definition according to Judge Jeyaretnam.
Conclusion
In conclusion, this decision serves as an important step toward recognizing cryptocurrencies as legal property with similar status to traditional currency or other forms of physical wealth such as gold or silver