Cha&Kwon Law Offices wrote a legal opinion on whether NFT is considered as securities and whether the NFT marketplace falls under VASP.

Although launching of NFT marketplace is active recently, the Financial Services Commission have not yet made any official announcement on whether NFT marketplace is considered as a VASP. Discerning legal eye is needed when deciding whether the NFT should fall under virtual asset considering its characteristics or functions and whether NFT should be considered as securities.

Depending on whether the NFT marketplace provides NFT transaction payment and calculation service, issues on (1) whether the NFT marketplace operator is considered a E-commerce Intermediary under the Electronic Commerce Act or (2) whether the business falls under payment gateway business under the Electronic Financial Transaction Act could become legally sensitive. Cha&Kwon Law Offices proceeded a careful examination on such issues by making careful analysis on the distribution structure of NFT sale profits.

Review on relevant laws and regulations before starting an NFT startup is a must. If you are planning a similar business with NFT, please feel free to receive legal consultation from Cha&Kwon Law Offices.