Legal Challenges in Defining and Regulating Non-Fungible Tokens

Abstract

This research aims to study concepts and theories regarding non-fungible tokens (NFTs) as digital assets. It also seeks to examine the issues surrounding the legal status and regulation of NFTs in Thailand and to propose appropriate guidelines for defining their legal status and regulatory framework in alignment with the characteristics of such digital assets. The researcher has conducted a study by collecting information from documents, legal texts, books, academic articles, and electronic data from relevant agencies, including guidelines for determining the legal status and regulatory approaches for NFTs in the United States, England, and Singapore. The study found that Thailand has not yet clearly defined the legal status of NFTs, nor has it established specific legal measures for their regulation. As a result, the trading of NFTs cannot be appropriately regulated. The researcher found that NFTs have the status of property under the Civil and Commercial Code and proposed guidelines for regulating NFTs. It is suggested that a specific definition of non-fungible token digital assets should be included in the Royal Decree on Digital Asset Businesses B.E. 2561. Additionally, there should be guidelines for interpreting and adapting the aforementioned law to broaden its scope of application to encompass NFTs.