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tax purposes, but, without detailed legislation or guidance, their precise tax treatment requires consideration of existing tax rules and an attempt to fit a given cryptoasset within the most appropriate regime. This means looking at a variety of factors including the nature of the cryptoasset, what it represents, its intended use and whether any analogies can be drawn from the relevant jurisdiction's existing approach (if any) to taxation of cryptocurrencies. This can give rise to considerable complexity and uncertainty. The exercise becomes particularly challenging when considering NFTs. By way of example, if I sell my NFT to you, questions will need to be asked to ascertain the tax treatment, such as: • What exactly is being sold and why? Is it the underlying asset (and if so, is that underlying asset an intangible asset, a financial instrument, a physical asset, or something else), is it certain limited rights in the underlying asset, or are such rights so limited that the asset being sold amounts to no more than the NFT itself? Capital gains taxes, income taxes, VAT/sales taxes and/or transfer taxes may be relevant depending on the answers. • If the sale falls within deemed market value rules, how do we go about valuing the NFT in a potentially illiquid market when it is supposed to represent something unique, and may in fact merely confer the status of owning the NFT itself without any meaningful rights in an underlying asset? • Which jurisdiction(s) get to claim taxing rights? Are NFTs located where the beneficial owner of the NFT is resident, as is generally the approach taken with respect to cryptocurrencies, or might they be located in the jurisdiction of the underlying asset (and is it straightforward to work out where that is if the underlying asset itself is digital)? • What happens if the underlying asset is later hacked, duplicated, counterfeited, destroyed or deleted, or the link between the NFT and the underlying asset is broken? Will the purchaser be able to claim a loss for tax purposes? Given all of this complexity, coupled with the decentralised and anonymous nature of cryptoassets, we expect that a significant proportion of transactions involving NFTs and other cryptoassets remain unreported and untaxed. Tax compliance and evasion risks with respect to NFTs and other cryptoassets have largely remained unexplored to date. However, cryptoassets in general are becoming more mainstream, and NFTs in particular are very much in the public eye by virtue of being associated with celebrities, sports teams and eye-watering sale prices. The OECD is developing proposals around effective reporting and information exchange for cryptoassets, potentially making exchange platforms responsible for compliance in addition to taxpayers. Tax, and tax compliance, is therefore likely to become more complex for those issuing and arranging NFTs. Are there any resale rights implications? In the UK and the EU, the Artist’s Resale Right (ARR) ensures that creators of original pieces of physical artwork receive a small percentage of the sale price whenever their work is resold by qualifying intermediaries, for example by way of auction or dealership. ARR is unlikely to apply to artwork sold by way of NFTs and so creators may be concerned that NFTs offer a way to avoid ARR. One of the benefits of NFTs issued on DLT platforms that utilise smart contracts is that the commission process can be automated. By incorporating royalty obligations in the smart contract that accompanies the NFT, artists can ensure that they have similar protection to that provided by ARR. In jurisdictions where the law does not recognise resale rights relating to creative works and contractual provisions have traditionally given an alternative recourse, smart contracts that automate royalty payments could help bypass such limitations. However, some NFT marketplaces only function on specific types of DLT, which means that automated royalty payments might only take place when the NFT is NON-FUNGIBLE TOKENS: THE GLOBAL LEGAL IMPACT CLIFFORD CHANCE 5PDF Image | NON-FUNGIBLE TOKENS GLOBAL LEGAL IMPACT
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NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
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