Since the birth of the first digital currency, Bitcoin, in 2008, blockchain technology has developed significantly in various fields. As one of the financial hubs of Asia, Singapore has also attracted a wide range of software professionals and investors in the financial services industry involving blockchain technologies and nonfungible tokens (NFT). NFT marketplaces can be either gaming platforms for earning digital assets like Axie Infinity, collectibles trading platforms like NBA TopShot or metaverse platforms like Decentraland and Earth 2 where virtual properties can be bought and sold.

On 11 March 2021, a Singaporean entrepreneur and investor and an Indian businessman jointly bought an NFT painting, “Everydays: the First 5,000 Days,” made by crypto artist Beeple for a whopping $69.3 million at Christie’s Auctions in London. Many have begun to wonder whether NFT will become the next burgeoning investment sector after cryptocurrency. The Monetary Authority of Singapore (MAS) expressed its stance in February 2022, namely that NFTs may be subject to compliance requirements if they fall under the regulated regime (as discussed below) and MAS will continue monitoring the development in this sector.

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