NFT technology has been revolutionizing the art world. With the attraction and controversy surrounding the NFT today, all parties involved are interested in the legality of the NFT. So when it is legal to create NFT for an original asset or in what areas do NFT platforms need to apply for a license, let’s find the answers to the above questions with JNT in this article.
1. For NFT Platforms
Currently, the NFT field is still in the grey area in many countries, so the specific regulations on NFT are still very limited. As such, a platform will need to consider the nature of the NFT being traded to determine if it needs to obtain a license from the authority. However, given the current usage of NFTs (a unique and non-investment type of digital asset), platforms usually do not need to apply for a license in countries that are blockchain-friendly like Singapore, BVI, Hong Kong.
2. For NFT Creators
The creator of the NFT is the owner of the NFT, but not necessarily the owner of the underlying asset used to mint the NFT. To avoid unnecessary litigation, advice to all NFT creators is to ensure that they have the relevant intellectual property rights. In addition, the creator of NFT also needs to clarify the intended use of the NFT. Because if the NFT is considered an investment in a business or project, the creator will need to obtain a license from the competent authorities.
3. For NFT Buyers
Basically, buying NFT via platforms like OpenSea or Nifty Gateway does not require any kind of license. Usually, buyers don’t have any intellectual property rights to the underlying assets associated with the NFT, such as copying works for sale. However, this is not impossible if the buyer of the NFT obtains consent from the owner of the underlying work.
4. For NFT Sellers
The seller of the NFT can either be the creator or the buyer of the NFT. So what should sellers pay attention to? As with cautions to NFT creators, sellers also need to ensure that NFTs do not infringe any party’s intellectual property rights.
If you are still not sure whether your operating model requires a license, please contact JNT immediately for advice. Proud to be a pioneering professional legal and financial consulting unit in the blockchain, JNT has been helping hundreds of Clients achieve their business goals. Please contact JNT for the most comprehensive solution for your Project!
Auth. Zed Nguyen