Non-Fungible Tokens: A Fiduciary, Tax and Legal SnapshotNon-Fungible Tokens: A Fiduciary, Tax and Legal Snapshot
NFTs provide new challenges for administration and transfer that will keep all of us on our toes.
Given that the desire for non-fungible tokens (NFTs) is only getting stronger, and the prices only higher, it’s incumbent on fiduciaries to apprise themselves of the legal considerations that affect the ownership and disposition of NFTs. To the perplexed fiduciary or practitioner, we’ll provide an overview of: (1) the general nature of an NFT, (2) how fiduciary obligations are affected by the nature of and market for NFTs, (3) tax implications that arise on the sale or transfer of an NFT, and (4) security, fraud and other illicit activity concerns that arise in the NFT marketplace.
Introduction to NFTs
At its essence, an NFT is a digital token traded on a blockchain. NFTs are distinct from cryptocurrency because they’re “non-fungible” vers...
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