Our network of NFT specialist lawyers with extensive experience in various NFT projects in the region can assist you with the successful launch of your NFT project. Our specialities include
- Advising on appropriate company structure and Singapore company incorporation
- Nominee director services in Singapore
- Corporate bank account opening assistance
- Legal opinions on NFTs NFT token terms and conditions
- Legal and Regulatory structuring of NFT projects
- Compliance and Best practices framework advisory
- Intellectual Property related issues
- Trademark-related advisory – domestic and regional
- Business services agreements in relation to NFTs
What are NFTs?
Non-fungible tokens (NFTs) are cryptographic tokens on a blockchain with a unique code and accompanying metadata on the blockchain. NFTs constitute ownership of an underlying asset on the blockchain. The asset in question can take the form of digital paintings, music, videos, and even non-movable assets such as properties and rare collectibles.
Why are NFTs apart from other “fungible” assets such as precious metals, crypto coins and currency?
What sets NFTs apart from other “fungible” assets such as precious metals, crypto coins and currency is that no 2 NTFs are alike. So, the value they represent is also not alike. They cannot be exchanged one-for-one, unlike crypto coins and currency. Hence the term “non-fungible” which means “non-changeable”.
NFTs present a novel platform for asset owners: particularly artists, musicians, athletes, and owners of coveted collectibles to sell their work and associated assets.
NFTs generally are unregulated under prevailing Singapore law as they may not fall within the ambit of applicable securities law, financial advisory law or even the Payment Services Act 2019.
A recent Singapore High Court decision that NFTs are “private property” has helped to strengthen the legal rights and protection accorded to NFTs.
In May 2022, the Singapore High Court issued an injunction to prevent the sale of a coveted NFT from the Bored Ape Yacht Club series until the ownership dispute between the parties was resolved.
In 2023, the High Court case of ByBit Fintech Ltd recognised cryptocurrencies as a form of property. Courts can thus grant proprietary remedies in respect of cryptocurrencies, and in that case, imposed a constructive trust over the stolen assets such that the defendant held those assets in trust for the claimant, and the claimant could trace the proceeds of those stolen assets.
Our panel of virtual currency lawyers and dispute management & resolution specialists is well-positioned to assist you.
It is likely that NFTs will gain prominence in the coming months as it is a novel way to subdivide an asset. Issuers of NFTs however are advised to seek the advice of lawyers to structure the NFT sale so as to not fall foul of legislation.
A potential risk is for the NFTs to be deemed a collective investment scheme that may require licensing. It is thus best to work with experienced blockchain Attorneys in the structuring of the NFT.