Trading Artwork on the Blockchain

Abstract

This chapter explores the legal rights and interests acquired when purchasing an artwork tokenised with non-fungible tokens (NFT), addressing whether holding such a work equates to owning a physical copy. It contextualises the trade of artworks within a blockchain environment and examines recent legislation and court decisions on NFTs and cryptocurrency. A comparative study is conducted between common law and civil law systems, focusing on their concepts of assets and property in relation to NFTs. It recommends the Gulf states to consider lessons from jurisdictions like the United Kingdom, Singapore, Europe, and China and develop their legal framework to potentially align with international practice to facilitate cross-border trade of artwork and digital assets. The chapter concludes that NFTs, recognised as incorporeal assets conferring quasi-property rights, necessitate a recalibration of traditional property concepts. This adaptation should shift from exclusive control to the use and social utility of digital assets, ensuring a legally and ethically robust framework for NFTed artwork in the Gulf states.