Court can hear ‘borderless’ blockchain asset disputes.

The Singapore High Court has ruled that a claimant’s residency is sufficient to establish jurisdiction.

In a landmark decision which could have implications for litigation around the world, the Singapore High Court has affirmed its own jurisdiction over a dispute involving a non-fungible token (NFT), despite the fact that the blockchain networks which host NFTs are borderless and exist outside traditional national jurisdictions.

Should other jurisdictions follow suit, one of the more attractive elements of blockchain – that it sits outside the remit of national regulators and other bodies – could be eliminated as legislation finally catches up with technology. On the other hand, investors who may have been deterred in the past owing to the difficulty of initiating a dispute may now be encouraged by the move towards accountability.