LEGAL SUPPORT FOR NFTs - TheTechXplosion

Like all cryptocurrencies, this type of crypto asset has a particular characteristic that, in many cases, limits investment by individuals.

This characteristic is none other than the security and regulatory framework that surrounds this new form of digital art; this is because being decentralized does not make it clear what the legal support that supports them is. Especially now that everyone is rushing to buy Bitcoin.

Is the purchase of NFTs safe?

It is incredible how everything related to non-fungible tokens (NFT) has taken a sudden turn; even more than a year to date, more and more artists are joining this trend.

It makes us think of the security that surrounds the purchase process as a marketing operation and the fact of creating a digital work of art that can possess, in some way, a property title.

When something is intangible, sometimes it is hard for us to believe it.

It is the fact that NFTs, even though they are purely digital works of art, grant their creators the authenticity and certification of ownership. This is similar to what copyright would be, only that it is assumed that the creator is the one who designs it.

One of the important aspects is that thanks to the fact that the works are digital, the possibility of plagiarism or even fraud with some NFT can be easily traced.

Artists have begun to join this new way of exhibiting art, consequently allowing them to auction them at a higher price, which does not bother but instead satisfies the creators of digital assets.

Although the Blockchain platform and the applications that allow the design and creation of NFTs offer transparency and authentication in operations with this type of crypto active, there are still many legal loopholes; everything is a compliment.

Let us remember that we are working around crypto assets and that, like cryptocurrencies, they suffer highly variable fluctuations. One day, the value of the work of art can be equivalent to a fortune; the next day, it can be for half of its acquisition cost.

Why is there talk of a legal vacuum around NFTs?

When we talk about a legal vacuum, we mean that NFTs are most talked about now, and there are many questions regarding the legal support that revolves around them.

That there is a legal vacuum is true, but it is not that nothing offers us the protection of digital pictures.

Creating a legal framework that allows the regulation and protection of users during commercial transactions, avoiding theft, and the rules that must have the platforms of commercialization and creation of NFTs is becoming more and more necessary.

It is not intended to create a regulatory entity; it is to create a legal foundation where artists can avoid future problems regarding intellectual property and copyright of the works made.

Is there a legal regulation for NFTs?

Currently, with all the movement of artists around the creation and commercialization of NFTs, the lack of rules or regulations that regulate the exchange and authorship of digital works has generated significant controversy.

To date, one of the legal tools used for the defense against any irregular act about NFTs in the Criminal and Civil Code of each country is based on the articles referring to copyright and the Intellectual Property laws.

Let us remember that everything that the digital and cryptographic market is offering is new, and therefore those involved in one way or another must be the ones who organize and create the rules and laws that provide greater security to this type of operation.

Conclusion

Anyone who wants to invest in cryptocurrencies and crypto assets must weigh the pros and cons that this type of investment entails.

The security and confidence that a market can generate is the essential point when investing; the volatility of these digital assets is not a secret to anyone. Their high profits are not a lie either.

It only remains to suggest that this type of operation must have, in addition to the rules of each platform that exposes and creates NFTs. This regulatory framework offers greater security and protection to the author and buyer of digital assets.

They establish the guidelines to follow before, during, and after the exchange, auction, purchase, or sale of digital art paintings.