Introduction: Crypto is Property
This ruling in Singapore declared cryptocurrency to be personal property for the sake of determining whether it could be held in trust or not.
Body: Interesting
This is interesting because in the courts opinion, this meant cryptocurrency held at an centralized exchange was not an investment, but property held for the owner, and the holder has a duty to return it.
One of the most often heard phrases in cryptocurrency is not your keys, not your crypto.
This usually refers to sending your crypto from your wallet, where it is protected by your keys, to the wallet of an exchange, where it is protected by their keys.
This status has been ruled as ownership in some legal bankruptcy proceedings, and as an investment in other legal rulings.
This means in Singapore cryptoinvestors can start to litigate for the return of their crypto assest from failed exchanges or other projects where it was held for them.
Japan first, now Singapore, America When?
Japan passed laws protecting cryptoinvestors years ago, and requires crypto investors funds not be comingled with exchange funds. This led to investors receiving all their capitol when FTX Japan failed. American investors are still waitinmg for similar protections, as are Europeans.
Conclusion: So much pain could have been avoided.
We can only imagine how many investors would have been protected and not lost billions of dollars if similar protections existed in law to protect the investors who lost their invested crypto in Terra Luna, Celsius, 3Arrows Capitol, Gemini Earn and others, including FTX International. So much pain could have been avoided and Do Kwon and Sam Bankman-Fried could have been saved from them selves.
Leoglossary Terms:
Cryptocurrency, Bankruptcy
Leoglossary: cryptocurrency