Description

Since the launch of Bitcoin in 2008, cryptoassets have gained popularity with retail investors and banks. Exchanges have been set up to facilitate the trading of cryptoassets, such as Bitcoin and Ethereum. However, the structure of each exchange may differ, depending on the services which the exchange provides. Some exchanges hold cryptoassets on trust for the traders trading on their platforms while others do not. The terms of the service agreements may vary widely between different exchanges. How do property and contract law characterise these arrangements? What are the rights and remedies of the exchange participants? Two recent judgments handed down by the courts in Singapore and New Zealand demonstrate the difficulties in understanding how cryptoassets and the exchanges they are traded on, operate. In Quoine Pte Ltd v B2C2 Ltd(“Quoine”) [2020] SGCA(I) 02, the Singapore Court of Appeal clarified how the doctrine of unilateral mistake applies in the context of algorithmic trading, and made important observations on how the doctrine may develop going forward. In Ruscoe v Cryptopia LTD (In Liquidation) (“Cryptopia”) [2020] NZHC 728, the High Court of New Zealand held that cryptoassets are objects of property which can be held on trust. This seminar explores the wider implications of these decisions for property and contract law, and considers how the principles laid down in Quoine and Cryptopia may influence future cryptoasset-related disputes.