Hong Kong’s ASPIRe Roadmap & Gatecoin Ruling: A New Era for Crypto Trusts

Introduction: Hong Kong Strengthens Its Position as a Crypto Wealth Hub

In a major step forward for digital asset wealth management, Hong Kong has introduced two significant regulatory and legal changes in 2025:

1. February 19, 2025 – The Securities and Futures Commission (SFC) launched the ASPIRe regulatory roadmap, providing a structured framework to regulate, safeguard, and facilitate virtual asset investments.
2. January 24, 2025 – The Hong Kong High Court ruled in Re Gatecoin Limited (No. 2) that cryptocurrency qualifies as trust property, allowing it to be legally held within trusts for wealth preservation and succession planning.

These two developments mark a major turning point for family offices, trustees, estate planners, and wealth professionals who are exploring how to legally structure and protect digital assets.

With both legal precedent and a regulatory framework now in place, Hong Kong is emerging as a key jurisdiction for crypto trusts, providing much-needed clarity on custody, compliance, and wealth structuring.

ASPIRe Roadmap: A Regulatory Framework for Crypto Trusts

The ASPIRe roadmap, introduced by the SFC, is designed to strengthen investor protection and institutionalize the virtual asset ecosystem. While its primary aim is to support the growth of regulated virtual asset investments, it also reinforces the importance of secure custodianship and compliance—which are essential for structuring crypto trusts.

How ASPIRe Impacts Crypto Wealth Management & Trusts:

📌 Custody Clarity
ASPIRe introduces stronger custody requirements, ensuring that assets held in trusts are properly segregated and safeguarded. This aligns with the Gatecoin ruling, which emphasized that crypto held in pooled wallets can still qualify as trust assets if the trust intention is clearly defined.

📌 Regulated Virtual Asset Investments
The roadmap supports the expansion of crypto ETFs and tokenized financial products, allowing trusts to invest in regulated digital assets rather than simply holding them passively.

📌 Reinforcing Hong Kong as a Crypto Wealth Hub
By strengthening compliance, transparency, and security, ASPIRe makes Hong Kong a preferred jurisdiction for structuring and managing crypto trusts, alongside other key offshore trust jurisdictions such as Cayman Islands and BVI.

For more details, visit the official ASPIRe roadmap by the SFC

Gatecoin Case: A Landmark Ruling for Crypto Trusts

While ASPIRe establishes the regulatory framework, the Re Gatecoin Limited (No. 2) ruling provides the legal foundation for including cryptocurrency in trust structures.

• What Was the Gatecoin Case About?

Gatecoin was a Hong Kong-based cryptocurrency exchange that operated from 2015 until it entered liquidation in 2019 following a series of financial and operational difficulties. When the company collapsed, a key legal question arose:

Did customers’ deposited cryptocurrencies belong to them, or were they company assets to be liquidated and distributed among creditors?

• The case was heard in two phases:

1. In Re Gatecoin Limited (No. 1) [2023], the court confirmed that cryptocurrency qualifies as property under Hong Kong law—a first for the jurisdiction.
2. In Re Gatecoin Limited (No. 2) [2025], the court addressed whether crypto held in trust should be returned to beneficiaries and how it should be allocated.

• Key Rulings from the Court:

1. Crypto is trust property – The court ruled that cryptocurrency qualifies as trust property, allowing it to be legally included in trust structures.
2. Custodians must define trust relationships – Crypto in pooled wallets can still qualify as trust assets, but only if the trust intention is clearly documented. Otherwise, digital assets risk being classified as company property rather than belonging to beneficiaries.
3. Crypto should be returned in-kind – Where possible, beneficiaries should receive their crypto in its original form (in specie), rather than as a cash equivalent. However, if transaction costs are too high, liquidation may be necessary.
4. Cross-border trust structuring is increasingly relevant – The ruling aligns Hong Kong with Singapore, the UK, and New Zealand, reinforcing crypto trusts as a viable option for international estate planning.

• Implications for Family Offices & Trustees

With crypto legally recognized as trust property, this ruling provides greater certainty for structuring offshore crypto trusts, particularly in Cayman Islands and BVI, which have long been preferred jurisdictions for wealth structuring.

Trustees and family offices should now review existing structures to ensure compliance with evolving legal, regulatory, and tax considerations in multiple jurisdictions.

Practical Considerations for Structuring Crypto Trusts

With both a legal ruling (Gatecoin case) and regulatory support (ASPIRe roadmap) in place, the next focus must be practical execution.

1. Selecting the Right Trust Jurisdiction

While Hong Kong provides strong regulatory support, many crypto trusts are being structured offshore in jurisdictions such as Cayman Islands and BVI due to:

• More flexible regulatory frameworks
• Tax neutrality
• Robust asset protection laws

2. Ensuring Proper Custody & Governance

Crypto trusts require regulated custodians and well-structured governance models to mitigate risk.

• Custodial agreements must be explicit in defining asset ownership and segregation.
• Multi-signature wallets and cold storage solutions enhance security.
• Trustees must be well-versed in crypto regulations to manage compliance.

3. Tax & Compliance Planning

• Jurisdictions have varying tax treatments for crypto assets—understanding capital gains tax, estate tax, and reporting obligations is essential.
• Hong Kong’s NCIES visa program now recognizes crypto assets in wealth assessments, indicating further institutional acceptance of digital assets.

4. Investment Strategies for Crypto Trusts

With the expansion of regulated crypto ETFs, trusts can now allocate assets into structured digital asset products, allowing for portfolio diversification while maintaining compliance.

Industry Best Practices: Collaboration is Key

With legal and regulatory clarity now in place, the next phase for family offices, trustees, and UHNW individuals is to develop best practices for crypto trusts.

What industry professionals should focus on:

• Reassessing trust structures to ensure compliance with evolving regulations
• Optimizing jurisdiction selection based on tax efficiency and asset protection
• Engaging professional custodians to ensure assets are properly ring-fenced
• Aligning investment strategies with compliant virtual asset products

We have been working with top professionals across legal, wealth management, and trust sectors to navigate these developments and refine best practices for structuring crypto trusts in offshore jurisdictions.

If you are considering how to structure crypto trusts efficiently and compliantly, we welcome discussions with industry peers and stakeholders to contribute to the development of best practices in this rapidly evolving space.

How do you see these developments influencing the future of digital asset trusts?

For more details, visit the official ASPIRe roadmap by the SFC