D’Light advised a client that sells non-fungible tokens (NFTs) for the alcoholic beverage and operates a related platform on whether it violates domestic liquor laws, the Act on the Reporting and Use of Specified Financial Information Transactions (the “Specified Financial Information Act”), and the Capital Markets Act.
The client was issuing and selling NFTs with tiered memberships and NFTs linked to alcohol, which can be traded on NFT marketplaces such as “Opensea.” As the client provided the NFTs in a structure that could be exchanged for actual alcoholic beverages, specific and complex legal advice was required due to the close regulatory interaction between alcohol, NFTs, and virtual assets.
In this regard, D’Light analyzed the regulations applicable to the business, suggested ways to operate the business legally, and sought to confirm the taxation of the client’s business revenue from the tax authorities. In this process, we provided legal advice to the authorities to clearly explain the client’s business model so there would be no misunderstanding.
As the potential of NFTs is gradually confirmed in the market, various business models combined with NFTs are being launched. Although NFTs are just a technology, the concept of NFTs is unclear in the current laws, causing a lot of confusion among regulators. D’Light will provide professional advice to help the clients operate their businesses in a clear legal direction under these circumstances.