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Crazy outcomes when current laws applied to NFTs and the metaverse By Cointelegraph

September 4, 2022
Reading Time: 4 mins read
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Crazy outcomes when current laws applied to NFTs and the metaverse By Cointelegraph
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Crazy outcomes when current laws applied to NFTs and the metaverse

NFTs can now serve as court documents but they might also be unregistered securities, illegal loot boxes, or come with impossible tax demands.

Nonfungible tokens (NFTs) are thought of by most people as just funny pictures that degens on the internet spend far too much money on for poorly understood reasons. But Jason Corbett, managing partner of global blockchain law firm Silk Legal, says new and innovative use cases are beginning to emerge.

A bunch of legal absurdities occurs when you apply existing laws to NFTs and the metaverse.

Securities regulations

Billions are spent marketing crypto to sports fans Is it worth it?

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NFT communities greenlight Web3 films: A decentralized future for fans and Hollywood

A non-fractionalized real estate NFT seems to steer clear of securities regulations. Source: LiquidEarth
Irina Heaver, (2nd from right) on a metaverse panel moderated by Elias Ahonen (left) in Dubai. Source: WOW Summit

Yes! We have no bananas

You may owe the government 30% of your bananas. Source: CyberKongz

Taxation quagmire

Taxes are already a major headache for NFT and crypto owners due to vaguely applicable rules. Source: Pexels

Billions are spent marketing crypto to sports fans Is it worth it?

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NFT communities greenlight Web3 films: A decentralized future for fans and Hollywood

Wealth taxes for NFT collectors?

These last sale prices are one way to estimate NFT value, meaning these owners could owe big ETH to the tax man depending on where they live. Source: OpenSea

Loot boxes and gambling

Billions are spent marketing crypto to sports fans Is it worth it?

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Continue Reading on Coin Telegraph

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