Lee & Ko’s NFT team has been at the forefront of advising clients on NFTs (Non-Fungible Tokens) since the very beginning of the emergence of NFTs, when most of the general public was unacquainted with this concept. With its vast experience in representing large cryptocurrency exchanges including Upbit and advising on various cases such as ICO (Initial Coin Offerings) and the suspension of issuing new virtual accounts to cryptocurrency exchanges, our team has grown as the key player in the NFT sector since 2019, and has positioned itself as a market leader for providing legal advice on a wide range of issues related to NFTs, from minting and trading of NFTs and publishing of P2E games to the exploration of crypto-friendly regulatory regimes.

Lee & Ko’s NFT team has an in-depth understanding of the industry, technical expertise and vast experience in the field. The team has actively advised and represented not only Korean conglomerates and major platform companies, but also global players in entertainment, platform development, and gaming industries in connection with the establishment and operation of an NFT marketplace, as well as all related legal and regulatory issues.

Growing together with the emergence of virtual assets and NFTs in the Korean market, Lee & Ko’s NFT team is now recognized as the unrivaled team of top advisors in terms of resourcefulness and reliability by practitioners in the industry.

Expertise

Establishment and operation of an NFT marketplace

Advice on legal risks of NFT marketplace and providing advice on overall structure of minting and trading of NFTs
Advice on whether NFTs would be deemed as securities or virtual assets, and on the applicable regulations and responsive strategies
Advice on responses to domestic regulations applicable to NFT marketplaces, and providing recommendations on jurisdictions with crypto-friendly regulations
Advice on payment methods and internal payment clearing structures for NFT marketplaces
Advice on regulations related to marketing activities and methods including complete gacha of the NFT marketplace

Legal services related to minting of NFTs

Drafting and reviewing of various kinds of NFT related agreements between the parties including NFT marketplaces, NFT agencies and artists, and terms and conditions for NFT marketplaces.
Analysis of Korean regulations applicable to NFT, and providing legal advice on alternative
Advice on potential legal risks in trading and complete gacha of NFTs

Legal services related to investments in NFTs

Advice on regulations applicable to investments in and possession of NFTs, and on foreign jurisdictions with more friendly regulation
Advice on fractional investments that are securities under the domestic law, and providing consultation on responses to regulatory sandbox

Advice on NFTs that are virtual assets

Advice on issues under the Act on Reporting and Using Specified Financial Transaction Information for virtual asset service providers such as ISMS verification, securing KYC accounts and reporting of virtual asset service business to the Korea Financial Intelligence Unit (KOFIU)
Analysis on and proposal of legislation bills and representation of clients in response to the regulatory authorities

Copyright and technical issues related to NFTs

Advice on establishing and procuring copyrights as well as protecting program copyrights in minting and trading of NFTs and representation in relevant disputes
Advice on filing a patent application relating to the minting and trading of NFTs and representation of the clients in patent litigation and disputes

Tax issues related to NFTs

Advice on tax issues related to minting and transactions (including assignment and renting) of NFTs
Advice on tax planning with respect to NFT transaction structures
Representation and advice on cases related to tax audits as well as tax investigations on the clients engaging in NFT businesses
Representation of clients in response to tax authorities’ dispositions related to NFTs (taxation and compulsory execution)
Advice on tax issues related to other types of NFT transactions