Are NFTs illegal?

Esseson Raphael

Hold this thought: NFTs are typically art objects like paintings, and in the not-too-distant past (and even now), we have seen racketeers launder billions of dollars through art pieces. Is it now possible for cybercriminals to launder money and evade taxes using NFTs? And is it illegal to launder money and evade tax? Yes absolutely, but that does not make NFTs illegal in and of themselves. Human innovations have always been a force for good and evil, and we are still innovating.

However, there are more palpable legal challenges In the NFT space than money laundering: Copyright. A widespread fallacy is that when you purchase an NFT, you purchase the digital artwork's copyright. This is not true. The scenario is practically identical to that of purchasing a painting. When you buy a painting, you are just purchasing the actual artwork and not making and selling reproductions or creating new works that totally or substantially replicate the original. The same is true for NFTs: no copyright is acquired automatically. NFT holders' rights are mainly limited to the ability to possess, sell, lend, or transfer the NFT itself, depending on the terms of the marketplace where you make your purchase.

Have a question you’d like to ask?

Join the community and post or answer questions

How do we know this?

Hundreds of people ask Movingto for help every year. We talk to hundreds of local professionals, then we share the information with you.

Related questions