Singapore High Court Judge rules NFT as a legitimate property

NFTs are now considered an asset property according to Singapore High Court Judge Justice Lee Seiu Kin. The non-fungible tokens meet the requirements to be declared property by Singapore law.

The decision for this ruling is related to a case of a Bored Ape NFT used as collateral to loan money. Both parties used the NFTfi platform to lend $150,000 in exchange for BAYC #2162.

The issue began when the lender threatened the borrower to pay back the loan in full or else he would sell the BAYC on the marketplace.

The previous owner sued the lender which froze the NFT trading on the market. This is the first time an NFT trading has been paused due to a commercial dispute.

“This landmark ruling is significant because it recognizes that Singapore courts can take jurisdiction over assets sited in the decentralized blockchain,” said Withers KhattarWong partner Shaun Leong

Today, Singaporean Justice Seiu Kin explained that NFT will be labeled as a digital asset property.

For a long time, courts and authorities have been struggling to declare non-fungible tokens as legitimate property based on existing laws. There is also a lack of regulation to protect consumers.

The Singapore High Court is making an effort to protect consumers from risks but also establish a good rule of law for NFT owners. After all, Singapore is one of the leading blockchain adopters.