LEGAL ENFORCEABILITY OF NFTS AND VIRTUAL PROPERTY

Non-fungible tokens (NFTs) have transformed the world’s perception of ownership by assigning digital collectibles and artwork to online assets that can be transferred and traded, however the legal infrastructure regulating these assets has failed to keep pace with the technological advancements. This paper examines the legal enforceability of NFTs and virtual property in India. It evaluates the applicability of the existing legal frameworks, including the Copyrights Act, Income Tax Act, and the Indian Contract Act to bridge the regulatory gap in India. The paper first analyses the technical foundation of NFTs and draws a clear distinction between the token and the underlying asset. Further, the paper assesses the enforceability of smart contracts and the concerns regarding informed consent and the gap in the framework to regulate self-executing code. The paper concludes with suggestions to bridge the legal blind spots in the Indian landscape in regulating these non-fungible tokens.