Through a recent legal judgement, Singapore’s High Court has officially acknowledged cryptocurrency as a property eligible for trust holding. The ruling is a result of the case initiated by the Seychelles-based exchange, Bybit, against one of their contractors, Ho Kai Xin, alleging that she violated her employment contract by misusing her position to self-transfer over 4.2 million USDT, a stablecoin issued by Tether.
The judiciary echoed the sentiments of a public consultation response by the Monetary Authority of Singapore published in 2023, which endorses the practical feasibility of identifying and segregating digital assets, resonating with the perspective that these can indeed be held on trust.
In his statement, Judge Philip Jeyaretnam, stressed on the concept that “the holder of a crypto asset has an intangible property right, recognisable by the common law as an enforceable action in court.” While acknowledging a certain “element of circularity” in this conclusion, he noted that it’s not remarkably different from the legal approach to other socially constructed entities, such as money.
The judge propped up his argument by stating, “Value is not inherent in any object. It’s only because people widely accept the exchange value of physical or virtual entities, they evolve into money.” This assertion may resemble a common sceptic view regarding cryptocurrency’s value, yet serves to revalidate the evolving perception and acceptance of crypto assets globally.
The court ruling also favoured Bybit’s appeal for affirming Ho as the trust holder of both the USDT transferred and fiat currency. Ho defended herself by blaming her cousin, Jason Teo, for stealing the assets from Bybit, asserting that he controlled the recipient addresses. The court, however, based on available evidence, rejected Ho’s defense citing a likelihood that “Jason might not exist”.
Subsequently, the court ordered that Ho must return the assets in her possession back to Bybit. CoinDesk is still awaiting response from Bybit on the matter. In an era where universal recognition and regulation of cryptocurrency is still transiting from the periphery to mainstream, significant legal reflections such as the one made by Singapore’s High Court mirror a broadening acceptance of cryptocurrencies as more than just a medium of exchange.
Source: Coindesk
