Legal Advice on the Legal Nature of Points Used on an NFT Platform

Business operator A sought legal counsel from Cha & Kwon Law Offices before deciding to establish an NFT sales platform that also provides user-to-user transaction services.

The client inquired about registration requirements and the legitimacy of self-issued points that may be used on the NFT platform. In order to give helpful guidance, our firm conducted research on a wide range of connected subjects that fall under various legal systems, including electronic money, prepaid electronic payment methods, and general issues.

The Electronic Financial Transactions Act states that anybody who conducts business, such as offering prepaid electronic payment methods, without being registered may be subject to a fine of up to 30 million won or a possible 5-year prison sentence.

For those operating a similar firm, seeking legal counsel from experts familiar with the business strategy and the industry can assist them avoid hazards. Before launching a new business model, consult with Cha & Kwon Law Offices about any pertinent issues to carefully assess legal obligations.