Ownership of NFTs

Abstract

This chapter delves into the complex legal landscape surrounding the ownership of non-fungible tokens (NFTs). Initially distinguishing NFTs from fungible cryptocurrencies like Bitcoin, the discussion highlights how NFTs leverage blockchain technology to certify the authenticity and ownership of unique digital objects. While NFTs record ownership and enable exchanges, they do not inherently confer legal ownership or copyright of the underlying asset. The chapter examines various perspectives on classifying NFTs within existing legal frameworks in common law and civil law, noting the challenges posed by their ability to represent diverse assets and rights. It explores analogies to property and intellectual property law, ultimately advocating for treating NFTs as a form of private property. This approach aligns with recent recommendations by the English Law Commission to adapt property law for digital assets. By recognizing NFTs as personal property, the chapter argues, we can provide robust legal protections for valuable NFTs and support their future development in digital marketplaces.