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NFTs as property: what next?

13 May 2022
Issue: 7978 / Categories: Features
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Non-fungible tokens have been confirmed as property by the High Court: Racheal Muldoon of 36 Commercial and counsel for the successful applicant hails the ruling & explores its implications for NFTs going forward
  • In March, the High Court recognised for the first time that non-fungible tokens (NFTs) constitute property and are therefore capable of being the subject of an injunction.
  • There are many implications of this landmark ruling, including that it empowers NFT holders to seek recourse from the courts where NFTs have been unlawfully removed, and suggests that NFTs are taxable and can be held on trust etc.

Non-fungible tokens (NFTs) are often ridiculed as valueless digital images of apes, capable of being downloaded by anyone at the click of a mouse. The unprecedented acceleration in the demand for NFTs in 2021, as captured in the recently published The Art Market 2022 Report by Art Basel and UBS, is equally disregarded as a short-lived ‘fad’. But what of these criticisms if NFTs constituted legal property?

On 10 March of this year, Pelling

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MOVERS & SHAKERS

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

NEWS
The proposed £11bn redress scheme following the Supreme Court’s motor finance rulings is analysed in this week’s NLJ by Fred Philpott of Gough Square Chambers
In this week's issue, Stephen Gold, NLJ columnist and former district judge, surveys another eclectic fortnight in procedure. With humour and humanity, he reminds readers that beneath the procedural dust, the law still changes lives
Generative AI isn’t the villain of the courtroom—it’s the misunderstanding of it that’s dangerous, argues Dr Alan Ma of Birmingham City University and the Birmingham Law Society in this week's NLJ
James Naylor of Naylor Solicitors dissects the government’s plan to outlaw upward-only rent review (UORR) clauses in new commercial leases under Schedule 31 of the English Devolution and Community Empowerment Bill, in this week's NLJ. The reform, he explains, marks a seismic shift in landlord-tenant power dynamics: rents will no longer rise inexorably, and tenants gain statutory caps and procedural rights
Writing in NLJ this week, James Harrison and Jenna Coad of Penningtons Manches Cooper chart the Privy Council’s demolition of the long-standing ‘shareholder rule’ in Jardine Strategic v Oasis Investments
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