Examination on Securities of Virtual Assets and Tokens of NFT Platform

Virtual assets are widely utilized on NFT platforms for the trading of NFTs and the utilization of the platform’s diverse services. However, whether virtual assets fall under the purview of ‘securities’ differ depending on the economy in which they are used. Thus, prior to issuing and listing tokens or publishing the white paper, a detailed examination is necessary. This is especially important because recent VASPs require legal opinions that argue virtual assets are not categorized as securities before listing their virtual assets. 

An NFT trading platform inquired about the securities of their token. Cha & Kwon reviewed the application scope of the Financial Investment Services and Capital Markets Act and the characteristics that constitute the notion of ‘financial investment products.’ With careful examination and extensive legal advisory experience, Cha & Kwon assessed the client’s white paper on the trading economy, provided clear legal opinions and precautions.