Cryptocurrencies have been recognized as “property” by a Hong Kong-based court in a recent ruling related to the defunct crypto exchange Gatecoin. The decision by Hogan Lovells, a law firm, sets a significant legal precedent and provides greater clarity for businesses dealing with cryptocurrency in Hong Kong.

Judge Linda Chan stated that cryptocurrencies have property attributes and explained that, “like other common law jurisdictions, our definition of ‘property’ is an inclusive one and intended to have a wide meaning.” This means that cryptocurrencies will now be treated like any other asset under Hong Kong law, and can be used in trust, like property, for settlement and payment.

Meanwhile, in Europe, the European Parliament has approved the first set of regulations for cryptocurrency markets. The measures are designed to prevent money laundering, terrorist financing, and other crimes by allowing crypto assets to be traced. If passed, these regulations would be one of the first comprehensive sets of rules governing the trading of cryptocurrencies in the world.

The new regulations require those facilitating the trading of cryptocurrencies to register with an oversight body and disclose their energy consumption. The disclosure of energy consumption is part of a climate element in the regulations, which aims to ensure that cryptocurrency trading is conducted in an environmentally sustainable way.

The European Union is one of the first legislative bodies to seek to regulate the crypto markets, and the move demonstrates increasing efforts to regulate the crypto industry. There is concern over the use of cryptocurrencies in criminality and terrorist financing, and these new measures aim to prevent such activities.

European Commissioner for Financial Services, Mairead McGuinness, believes that the new regulations will allow the sector to evolve in a safer environment. The regulations are expected to come into effect from July next year, and they will need to be updated continuously to evolve with the crypto sector.

There are still doubts over the long-term future of cryptocurrencies, and many MEPs believe that the regulations will need to be updated on a continuous basis to ensure that they remain effective. Sinn Féin MEP Chris MacManus, who acted as the shadow rapporteur for the Left Group, said that while he did not necessarily want to encourage the growth of cryptocurrencies, he believed there was a need to regulate the market.

In summary, the recognition of cryptocurrencies as property by the Hong Kong court and the approval of regulations by the European Parliament are significant developments in the world of cryptocurrency. The move to regulate the crypto markets demonstrates growing concerns about the use of cryptocurrencies in criminality and terrorist financing, and the regulations are designed to prevent such activities. While there are doubts over the long-term future of cryptocurrencies, these developments provide greater clarity and certainty for businesses dealing with cryptocurrency.