INTRO

There are six legal areas you need to bear in mind when being a project founder:

• securities law

• data protection law

• AML/KYC

• copyrights

• consumer law

• tax law

In fact, it's better to consider them by default than after a certain time period since this space can be difficult to navigate.

SECURITIES LAW

First, consider securities law.

Whether the jurisdiction you plan to run your business has a special legal regime for the asset you want to launch.

You want to make sure that the asset you launch is not considered a security, so you need to always consult with a local lawyer.

Do you need a license?

Do you need to register?

What additional requirements do you need to meet in order to offer the asset?

PERSONAL DATA PROTECTION

Next, data protection law.

You will process a lot of personal data, be it information about your clients, holders, users, etc.

Each jurisdiction has different laws, but the EU’s GDPR being the most strict can be your sample to be more likely compliant in other jurisdictions.

You will need to i.a.:

• implement data protection policy,

• data breach policy,

• publish data privacy notices on your website, and

• implement technical and organizational measures to protect the data.

COPYRIGHTS

If you want to launch an NFT project, consider what you want to do with copyrights.

Do you want to grant a license to holders?

What should be the scope of the license? Remember that blockchain transactions do not transfer copyright ownership.

AML/KYC LAW

Next is the AML/KYC law.

You will need to consider what requirements you need to meet.

• Are you required to KYC?

• What information should you collect?

• How should the info be stored?

Note that this area also covers data protection. You should not collect more information than required by law!

CONSUMER LAW

Next is consumer law.

Are NFT holders protected by local consumer law?

What requirements do you need to fulfill to protect your business?

E.g. In the EU consumers may waive their right to withdraw from the contract during the first 14 days after the purchase of the product via online means

TAX LAW

The last thing is tax law

• Is the asset you launch taxed?

• What rate, and when should you pay taxes?

• This of course differs from jurisdiction and always should be consulted with a local lawyer.

SUMMARY

In summary, if you're planning to launch an NFT project, consider the legal implications.

Be proactive and consult with a lawyer to avoid legal issues down the road.

Let’s Connect

I am Jack.

I am an ex-lawyer and the founder of a web3 project.

I spent thousands of hours analyzing web3 projects, in particular in the NFT space and building my own venture.

It’s my first article published here.

With over 80 articles already written on web3, blockchain, NFTs, and more, I'm excited to share my expertise with you every week.

Every Tuesday, I publish an article focusing on web3 strategies to help you thrive in this ecosystem.

Additionally, every Thursday I share my personal opinions on important web3 issues.

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