Seek legal advice from Crypto and NFT lawyer at Krida Legal

 NFT stands for non-fungible token. It is basically a token (a digital asset existing on the blockchain) and represents a ubiquitous digital item. The ownership of an NFT is proven by a private key to the wallet containing the token. Blockchain and NFT expertise is catching up for arts, visual artists who are creating tokens to safeguard their rights. This is crucial as online marketplaces are becoming popular for selling goods but assuring that no infringement happens issues. Krida Legal with an array of legal experts that while blockchains have been in vogue for long but NFT expertise is scaling popularity as clients feel it is pertinent to address intellectual property rights as well as address security concerns.

While different countries such as Canada, Switzerland have created frameworks to regulate cryptocurrencies under anti-money laundering legislation. Japan has even legalized certain cryptos as payment. But countries like China and Saudi Arabia have prohibited the usage of crypto as currency. But India has no regulated framework for cryptocurrency. The government of India could not materialize the ban of crypto in India which brought relief to the holders and traders of crypto.

There are various issues that need to be focused on to create a conducive environment for NFTs and cryptocurrencies in the country.

1.     Fill the regulatory gaps and implications pertaining to crypto

2.     Understanding the sanctity of crypto as currency or legal tender by the government under different laws regulating currencies such as RBI Act, 2934, Foreign Management Act 1999, and Coinage Act, 20211.

3.     Identification of crypto as goods are movable property to be regulated under the GST. If crypto is identified under GST it will bring revenue to the country. It may attract TDS under Income-tax Act, 1961 if identified as goods and for overseas transactions may invoke custom duty.

4.     There are ambiguities in classifying NFTs as contracts or derivatives. Buying of NFT from abroad may raise issues under the Foreign Exchange Management Act (FEMA). Also, there might be a possibility of violation of the IP law when transferring of the NFT from a copyright owner may take place.

Contact Krida Legal having a plethora of Crypto and NFT lawyer India at http://www.kridalegal.com/ to get legal advice for investing in NFTs and cryptocurrencies.