In an unprecedented turn of events, the High Court of Singapore has issued a landmark decision. They’ve declared cryptocurrency as personal property. Significantly, this includes fiat money, underscoring the rapid digital revolution.
The catalyst for this groundbreaking verdict was a case involving Ms. Ho Kai Xin. Formerly employed at ByBit, a cryptocurrency exchange, she found herself at the heart of a legal maelstrom. Ms. Ho allegedly transferred around $4.2 million USDT from the company’s coffers into her accounts. Consequently, the court has ordered her to return the funds.
However, it was not the substantial sum involved that made this case remarkable. Rather, it was the legal recognition of cryptocurrencies as property. Until now, cryptocurrencies’ intangibility made them a contentious issue in the property realm.
Judge Philip Jeyaretnam initiated an interesting analogy during proceedings. He likened digital tokens to rivers. “We name a river despite its water constantly changing. Similarly, we can identify a specific digital token,” he declared.
Jeyaretnam, moreover, highlighted the societal agreement as a foundation of value. Rejecting the idea that cryptocurrencies hold no real worth, he argued their value is based on societal consensus. He further defined cryptocurrencies as “things in action.” It implies a property that can be legally protected, even when not physically owned.
In support of this verdict, the court referenced a consultation document by Singapore’s Monetary Authority (MAS). It proposed guidelines for digital payment tokens. The court noted that these tokens could legally be held in trust if distinguishable and recognizable.
Hence, the importance of this ruling can’t be overstated. Besides acknowledging cryptocurrencies as property in Singapore, it sets a significant legal precedent. With this ruling, handling cryptocurrencies in legal situations will likely dramatically change. This could have a far-reaching impact on the global financial landscape. So, in the case involving ByBit, the Singapore High Court has not just made a judgment but history.
