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13 May 2022
Issue: 7978 / Categories: Features
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NFTs as property: what next?

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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

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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