Cha & Kwon Law Offices provided legal advice to companies seeking to issue NFTs that represent ownership of production equipment and the right to determine usage profits.

The Act on Reporting and Using Specified Financial Transaction Information broadly regulates virtual assets and defines them as electronic certificates that have economic value and can be electronically traded or transferred. NFT is a token that utilizes blockchain technology, and its use is vastly diversified depending on its characteristics. Therefore, NFTs may be subject to or excluded from various regulations applied to virtual assets depending on their usage characteristics.

If a business is conducted without a detailed review of the characteristics of NFTs, the NFTs may be regarded as virtual assets and face various regulations. Therefore, in the case of proceeding with an NFT-related business, seeking advice from an expert with an understanding of the related industry would be an advisable way to minimize risks. Consult with Cha & Kwon Law Offices to receive a thorough legal review from leading experts in the field.