Hogan Lovells , a global law firm, reported that a Hong Kong court recognized crypto as ‘property capable of being held in trust’ in a case concerning the shuttered crypto-exchange Gatecoin.

Justice Linda Chan who presided over this case reportedly stated that Hong Kong, like other common law jurisdictions defines “property”, broadly and “intended to be interpreted in a broad sense.”

The U.S. Internal Revenue Service considers crypto to be property when it comes to taxation. The U.K. law commission found that crypto could be classified under the existing laws of England and Wales.

Hong Kong’s Gatecoin , a crypto exchange, announced that it would shut down in 2019 and begin liquidation after an attempt to recover funds disputed from a former provider of payment services.

According to the Hogan Lovells Report, liquidators asked the court to decide whether Gatecoin’s crypto should be treated as trust property or “if there was no trust, then the digital assets should become available to all creditors” if it did not exist. According to the report, as of October last year, the exchange had up to $17.8 million in crypto.

The report stated that “while the court found that cryptocurrency can be the subject of a general trust, it determined that no trust was established in this case.”

Hogan Lovells stated that a ruling will give Hong Kong liquidators ‘greater clarity’ on how crypto assets owned by companies should treated during wind-down procedures.

Hong Kong has been pressing for more clear regulations in the crypto sector. Bernstein, a brokerage firm, said in an earlier report that Hong Kong’s regulatory approach to crypto may attract capital during a period of regulatory uncertainty.

CoinDesk has contacted the Hong Kong High court and Hogan Lovells to get their comments.

Parikshit Miishra is the editor.