In a landmark ruling, Singapore’s High Court has recognized cryptocurrency as a property that can be held on trust. This decision came about in a case involving Seychelles-based exchange Bybit and a contractor, Ho Kai Xin.
Singapore High Court Recognizes Crypto as Property
Bybit accused Ho of abusing her position to transfer over 4.2 million USDT (a stablecoin issued by Tether) to addresses she owned and controlled, in breach of her employment contract. She also transferred a quantity of fiat currency to her own bank account.
Judge Philip Jeyaretnam, who presided over the case, stated, “Like any other thing in action, USDT is capable of being held on trust.” This ruling aligns with a public consultation response published by the Monetary Authority of Singapore on July 3, 2023, which supports the view that digital assets can be identified, segregated, and held on trust.
The value is not inherent to the object, but people!
The judge further added that the holder of a crypto asset has an incorporeal right of property recognizable by the common law as a thing in action and so enforceable in court. He acknowledged that this conclusion might have an element of circularity about it, but it is not strikingly different from how the law approaches other social constructs, such as money.
Drawing parallels with traditional forms of currency, Jeyaretnam said, “It is only because people generally accept the exchange value of shells or beads or differently printed paper notes that they become currency.” He added that while some people are skeptical of the value of crypto assets, it’s worth remembering that value is not inherent in an object.
Ruled in favor of bybit, Ho is ordered towards sending the assets back to the exchange
This case highlights the unique nature of cryptocurrencies like AMP, which are designed to facilitate fast and efficient value transfer, especially in the world of decentralized finance (DeFi). AMP, for instance, provides a way to collateralize asset transfers, reducing the risk of fraud and making transactions quicker and more efficient.
The court ruled in favor of Bybit, ordering Ho to transfer the assets back to the exchange. This case sets a significant precedent in the legal recognition of cryptocurrencies, further cementing their place in the global financial landscape.
Leave a comment