Trusts of Cryptoassets

Low, Kelvin F.K.

Trusts of Cryptoassets

(2020) 34 Trust Law International 191; with minor updates in Richard C Nolan, Man Yip, and Tang Hang Wu (eds), Trusts and Private Wealth Management: Developments and Directions (Cambridge University Press, 2021) 153-177

City University of Hong Kong School of Law Legal Studies Research Paper No. 2020-020

24 Pages Posted: 17 Dec 2020 Last revised: 13 Feb 2025

See all articles by Kelvin F.K. Low

Kelvin F.K. Low

The University of Hong Kong - Faculty of Law

Date Written: December 15, 2020

Abstract

The birth of bitcoin in the Great Recession of 2008 appealed to cypherpunks and libertarians distrustful of government. Together with copycat altcoins, the volatility of cryptoassets has drawn interest from investors and speculators who did not share in these ideals, including trustees, raising four questions. First, can cryptoassets be the subject-matter of trusts? Secondly, if so, how may the rules relating to validity be applied to cryptoassets? Thirdly, is such an investment permitted under the terms and/or governing law of a particular trust? Finally, what must trustees be aware of in deciding whether to invest in this new asset class?

Keywords: trusts; cryptoassets; cryptoasset exchanges; certainty of intention; certainty of subject-matter; insurance; authorised investments; risks

Suggested Citation: Suggested Citation

Low, Kelvin F.K., Trusts of Cryptoassets (December 15, 2020). (2020) 34 Trust Law International 191; with minor updates in Richard C Nolan, Man Yip, and Tang Hang Wu (eds), Trusts and Private Wealth Management: Developments and Directions (Cambridge University Press, 2021) 153-177, City University of Hong Kong School of Law Legal Studies Research Paper No. 2020-020, Available at SSRN: https://ssrn.com/abstract=3749040