Sotheby’s to Accept Cryptocurrency For Hong Kong Diamond Auction
- The auction house previously accepted cryptocurrency payments for the sale of a Banksy artwork and a NFT.
- If cryptocurrency turns out to be the preferred payment method for the buyer, Coinbase Commerce will process the transaction.
Sign over the entrance to the Sotheby’s office in Zurich, Switzerland, 24 June, 2015. Sotheby’s is one of the world’s largest brokers of fine and decorative art, jewelry, real estate, and collectibles. Shutterstock
According to a 22 June report from Business Insider, Sotheby’s will accept bitcoin (BTC) and ether (ETH) as payment for a rare 101-carat diamond. The rare pear-shaped diamond called “The Key 10138” has been classified as flawless and is set to be auctioned in Hong Kong on 9 July. Sotheby’s estimates the diamond’s value between $10 million and $15 million.
“The Key 10138 is the first important diamond in the world to be auctioned with cryptocurrency as an accepted method of payment. It was named to symbolise the unlocking of a new era in commerce and technology, and thus is a key to history” Sotheby’s explained on their website.
If the diamond is bought using cryptocurrencies, the payment would be processed by Coinbase Commerce.
In May, the auction house announced that it will accept cryptocurrency in the sale of a Banksy artwork and in the auction of a “CryptoPunk” NFT in June. Other large global auction houses, including Christie’s and Phillips, have also announced that they will accept cryptocurrency payments for certain auctions.
- The decision has placed Hong Kong in line with other common law jurisdictions that had previously ruled crypto had the same attributes as property.
- This will give liquidators in Hong Kong greater clarity on how to handle crypto held by companies that are winding down.
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- Cryptocurrency exchange Huobi revealed that it is working on acquiring a crypto trading license in Hong Kong, and on opening a new trading platform in the city.
- The expansion was motivated by the Securities and Futures Commission’s (SFC) upcoming licensing regime, which could also allow retail investors to trade crypto.
- Hong Kong’s SFC has called for public feedback on its newly proposed licensing regime for cryptocurrency exchanges, which is set to take effect in June 2023.
- A key point of the public consultation is whether to allow licensed crypto exchanges to offers services to retail investors, and what protection measures should be put in place.