The Supreme Court, in its first decision in the NFT case, ruled that non-fungible tokens could be considered proprietary.
Singapore judge Lee Seiu Kin explained that NFTs meet certain legal requirements, namely that collectible tokens are easily distinguished from each other, they have owners. Ownership of digital items may be verified by third parties.
The judge issued this decision as a clarification to the May injunction against any sale and transfer of ownership of the NFT. The restrictive measures were requested by Singaporean Janesh Rajkumar, who was trying to defend his right to NFT #2162 from the Bored Ape Yacht Club (BAYC) collection. He tried to seize this token from a user with the pseudonym chefpierre, who is listed as anonymous in court documents.
Rajkumar, who is the plaintiff, used NFTs as collateral to borrow cryptocurrencies from chefpierre. When discussing the refinancing of the loan, the chefpierre warned Rajkumar that he could forfeit his right to use this NFT if the loan was not fully repaid, which the plaintiff was never able to do.
The judge noted that the May application for interim measures was urgent, so the parties were not required to be present at the hearing. The court did not have the opportunity to listen to the arguments of each side. Keene emphasized that a different conclusion could be drawn from a more complete understanding of the subject matter. The judge’s decision could prove to be a watershed moment for the NFT industry, as the recognition of ownership of the collectible tokens will make traders and investors feel more confident.
Some courts and regulators are beginning to be more explicit about their position on crypto assets. In May, the Shanghai High People’s Court recognized bitcoin as a virtual asset with economic value, despite China’s ban on cryptocurrencies. Last week, the South African Financial Conduct Authority (FSCA) recognized crypto assets as financial products.
Source: Bits

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