Will Courts Accept Cryptocurrency As A Security For Costs?

In a recent English High Court decision, Tulip Trading Limited v Bitcoin Association for BSV [2022] EWHC 2 (Ch) and [2022] EWHC 141 (Ch), the Court refused the claimant's request for security for costs to be paid in Bitcoin. This is the first English case where a party to litigation has sought to provide security in the form of cryptocurrency and provides helpful guidance on the interaction between cryptocurrency and security for costs. Tulip Trading Limited discusses the considerations the Courts may take into account to determine whether Bitcoin or other forms of cryptocurrencies will be accepted as an alternative form of security for costs. It will be interesting to see how the Hong Kong Courts may approach this issue if a similar request is made in the future.