On June 25th, the Singapore Supreme Court made a significant ruling stating that cryptocurrencies are considered “reliable assets” in a lawsuit involving the cryptocurrency exchange, ByBit, based in Seychelles.
In this case, ByBit accused Ho Kai Xin of illegally transferring over 4.2 million USDT to secret wallet addresses under her control, while also depositing fiat money into her bank account.
Presiding over the case, Judge Philip Jeyaretnam consulted with the Monetary Authority of Singapore and ruled that cryptocurrency assets, including USDT from Tether, are indeed considered reliable assets.
To support this statement, the Judge pointed out that proposed amendments in the consultation paper indicate that “digital assets can be identified and distinguished, thus we can trust them legally.” Additionally, Rule 22 of the Rules of Court 2021 also recognizes cryptocurrencies as assets. Examples of movable property under the Rule include “cryptocurrencies or other digital tokens.”
In addition to declaring cryptocurrencies as assets, the court ruled in favor of ByBit, demanding compensation and ordering Ho Kai Xin to return the assets to the exchange.
It is worth noting that Singapore is one of the countries making significant progress in the field of cryptocurrencies. In early July, the Monetary Authority of Singapore (MAS) mandated that cryptocurrency exchanges must store customer funds in trust accounts. This regulation will be implemented before the end of the year.
The country has demonstrated its support for blockchain technology to enhance the traditional financial system. Alongside this goal, Singapore is determined to crack down on illicit activities in the emerging industry.