[Consultation] Review of Legal Compliance for NFT Issuance and Distribution

Law firm Veat, upon receiving a referral from A, a company operating an online platform, conducted a legal review regarding the legal compliance of **NFT issuance and distribution**.

Law firm Veat was requested by A to advise on **the service of issuing NFTs within the online platform, allowing users to distribute them**, as well as concerns regarding potential violations of the current laws. Law firm Veat conducted a legal review concerning whether the NFT issuance and distribution service violates the **“Act on Reporting and Use of Financial Transaction Information” (Specific Financial Transaction Act)**, as well as a comprehensive review of the **NFT’s nature as a virtual currency, including its potential securities characteristics**. We provided legal counsel to the client regarding the issuance and distribution feasibility of the NFT they were attempting to issue.

Various industries are entering businesses utilizing the latest technologies such as NFT, metaverse, and blockchain. The NFT industry is experiencing explosive growth. Conversely, concerns are growing regarding the volatile virtual asset-based trading environment due to factors such as high volatility in virtual assets like NFTs and the metaverse, and a lack of legal and institutional frameworks.

Law firm Veat, with lawyers specializing in IT/technology and law, and extensive experience advising blockchain technology-based companies, provides legal counsel that **exceeds the uncertainties of the NFT and blockchain business environment**. If you need legal advice regarding NFTs, the metaverse, blockchain, and virtual currencies, please contact Law firm Veat.

Thank you.
Law firm Veat.