ABSTRACT
This chapter focuses on a trustee’s investment duties concerning cryptoassets under common law trusts. Given that cryptoassets remain an emerging asset class, there is limited legal precedent guiding trustees on how to manage such investments. The primary objective of this chapter is to develop a structured framework for trustees navigating cryptoassets investments, highlighting unique considerations specific to cryptoassets. Our discussion centres on general principles applicable to all trustees and will not delve into special requirements on specific types of trust. The chapter consists of 4 main sections. First, we outline the fundamental principles governing a trustee’s power to invest. We selected the legislations from three jurisdictions for comparative analysis. Second, we examine whether trustees has the authority to invest in cryptoassets. Third, assuming such authority exists, we identify and analyse key factors a trustee must consider when they are making decisions on the investment of cryptoassets. Finally, we explore strategies that trustees can use to prevent disputes and mitigate liabilities arising from cryptoasset investments. We also address the potential use of arbitration as a dispute resolution mechanism.
Cheong, Ben Chester and So, Ivan, Trustees’ Investment Duties Regarding Cryptocurrencies (July 21, 2025) in Chiann Bao, Maxi Scherer and Niuscha Bassiri (eds), Crypto Asset Disputes (Kluwer Law International 2026) [Forthcoming].
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