Franklin Boyd is a New York-based attorney specializing in Web3 entrepreneurship, investors and NFT platform builders. Additionally, she assists cultural DAOs and collectors in creating governance proposals.
NFTs allow artists to monetize digital art while creating verifiable records of ownership for collectors – but at the same time raise legal questions around IP ownership, resale restrictions, and authenticity.
Legal Issues
As the blockchain and crypto industry evolves, new forms of digital assets such as cryptocurrencies, Non Fungible Tokens (NFTs) and utility tokens emerge daily. Developers should understand the legal ramifications associated with these emerging technologies in order to effectively deploy them.
One of the primary challenges associated with non-financial trusts (NFTs) lies in their sale and transfer. NFTs that depict works of art may be sold under the impression that purchasing them confers commercial rights on those works; however, purchasing and transferring an NFT does not automatically confer such rights; rather it serves only as a representation of them; in order to gain any such rights through intellectual property laws, purchasers must first acquire them separately.
Selling NFTs may have tax implications. As per IRS standards, NFTs and cryptocurrency are considered taxable property; any gains realized on selling an NFT could trigger capital gains tax liability, especially if purchased and sold via an exchange that itself is subject to taxes.
Allocating tokens to team members may raise concerns with intellectual property law and securities regulations, as it violates both intellectual property laws and securities regulations. While startups typically compensate and incentivize their core teams with shares of common stock, tokens present legal hurdles which require expert legal knowledge for resolution.
Contracts
Web3 features non-fungible tokens (NFTs), unique digital assets stored on blockchain that represent ownership of digital art, music and other content. NFTs have become increasingly popular as collectibles; some users even accumulating thousands of them! As NFTs continue their rapid rise, brands should carefully consider legal implications when considering partnerships or creating offerings related to NFTs.
Many NFTs are associated with copyrighted media, making them subject to traditional intellectual property laws. However, purchasing an NFT does not automatically imply the acquisition of any related intellectual property rights in its media form – which presents developers with unique challenges when dealing with issues like hacking, fraud and contract breaches that cannot be resolved via traditional legal channels.
Lawyers can assist clients as the legal landscape shifts with the growth and evolution of NFTs and metaverse. By offering counsel on best practices for their particular business models, including how to launch NFTs, accept cryptocurrency payment as payments, leverage partnerships and manage intellectual property issues; lawyers also advise how to comply with regulations which vary across jurisdictions – such as reporting transactions to government bodies; while in others there may be regulatory bodies overseeing security and consumer protection laws that must be observed by financial transactions.
Intellectual Property
Intellectual property rights present a host of new challenges to NFTs. While they are an alternative way of producing and purchasing digital goods, they still require the licensee of an underlying IP asset such as music or art to grant the right for its use – leading to legal uncertainty regarding ownership of said underlying asset if linked with footwear such as sneakers or handbags bearing trademarks. Brands must ensure they protect their trademarks in this space by monitoring any possible infringements on them.
NFTs can be sold on global marketplaces, making it challenging to identify their minter or seller and enforce any infringement remedies. Furthermore, due to being virtual assets it may be hard determining which court has jurisdiction over disputes concerning NFTs.
Companies looking to facilitate mainstream adoption of NFTs need to create user experiences that are intuitive and straightforward, such as abstracting away complex blockchain complexities to make products feel less overwhelming, as well as upgrading NFTs so they are more applicable in real life (like Reddit’s Community Points which aim to incentivize content creation on Reddit). Furthermore, regulatory clarity must also exist so NFTs can be validated as valid technologies – for instance qualifying for R&D tax credits similar to physical products is ideal.
Taxes
Cryptocurrencies are an integral component of the web3. They offer a secure, direct method of payment and exchange. Furthermore, cryptocurrencies encourage creator economies by rewarding users who contribute content. Furthermore, cryptocurrencies provide incentive mechanisms that enable people to own and transfer unique digital media.
Non-fungible tokens (NFTs) are unique digital assets that reside on blockchain, representing anything from art to video games or music. Their values typically depend on supply and demand; when sold, NFTs may be taxed at capital gains rates that vary based on whether or not they qualify as collectible assets and how long the seller held onto them for.
The NFT ecosystem is growing quickly. Artists and content creators can use NFT marketplace to sell their creations; as more users participate in this new form of currency trading, legal issues must also be taken into consideration.
Mitch advises clients on legal matters related to new financial technology (NFT) launches, accepting cryptocurrency as payment for goods and services, contracting with vendors, managing partnerships and taxes. He suggests setting up multiple legal entities for their ventures including LLCs and S corporations which create an legal barrier between liability claims made against the business and an owner’s personal assets, thus protecting personal finances and retirement savings.
Why you should work with a law firm that specializes in such like Bull Blockchain Law Firm.
Bull Blockchain Law Firm And web3 Real Estate
Bull Blockchain Law is one of the few law firms solely focused on blockchain and cryptocurrency law. Established in Philadelphia by 2016 graduate Andrew Bull (who ran one of the first cryptocurrency mining companies), this firm provides regulatory clarity that ensures raises are compliant and efficient.
This firm provides intellectual property protection as well as advice regarding data privacy and security concerns for start-up and established enterprises alike.
Web3 is a decentralized open internet that allows people to manage the entire ecosystem instead of being controlled by big tech firms or Governments. It empowers the users by allowing them to manage their data & content and progress as a community. It has a wide range of potential applications in different industries. In real estate, it enables people to own property digitally and invest in virtual properties without having to face any legal hassles. It also streamlines the entire process by eliminating intermediaries. This way, it reduces the cost and time of property traders while improving transparency and trust.
As a result, it opens the door to countless opportunities in real estate. Some of the biggest real estate firms are leveraging the power of blockchain and Web3 to provide their customers with more control over their property investment portfolios.
They are replacing traditional paperwork with digitally registered documents that are immutable and secure. In addition, they are accelerating their real estate processes by using blockchain-based smart contracts to automate tasks. These self-executing contracts eliminate the need for real estate agents and ensure a smooth and efficient transaction for all parties.
What’s more, they are facilitating the transfer of ownership rights by tokenizing their real estate assets. This way, it allows multiple investors to co-own or buy a single property and increases the liquidity of their assets. It’s also enabling them to sell their tokenized real estate assets for cryptocurrencies in NFT marketplaces faster and more efficiently than ever before.
This new form of real estate is revolutionizing the industry. It combines the latest technologies and concepts like blockchain, NFTs, and metaverse to introduce a whole new world of financial autonomy, transparency, and asset ownership to people. It is attracting the attention of high-net-worth individuals and companies looking for a hedge against inflation and currency fluctuation.
A growing number of investors are utilizing web3-enabled real estate platforms to buy and rent apartments, houses, and other types of real estate. They are able to access this new type of real estate via the Internet and are embracing it because of its security, efficiency, and speed.
In order to build a successful web3 real estate platform, developers need to take into consideration several factors such as the business model, industry trends and relevance, vision, and more. They must work closely with experts to make sure that their platform complies with the local and international regulations regarding property ownership, securities, and data protection. Additionally, they should also consider implementing a community-driven governance model to ensure user adoption and support. Finally, they need to develop an attractive user interface and provide training resources as well as customer support to ensure that users are able to use the platform easily and effectively.
Cryptocurrency Law
Bull Blockchain Law specializes in helping clients navigate the risks and challenges associated with cryptocurrency markets and advises clients on various legal matters related to them – securities regulations, crypto trading exchanges, private equity investment companies and money services businesses among them.
Andrew Bull, founding partner of the firm and an expert in blockchain and cryptocurrency law, is widely renowned as an authority in his field. He has published in legal journals as well as presented at conferences across both North America and Europe. Furthermore, Andrew boasts significant business and technological experience having founded one of the first cryptocurrency mining companies and digital asset investment funds.
Bull is a member of both the Wall Street Blockchain Alliance and Government Blockchain Association, leading its blockchain practice. He regularly advises clients on compliance with complex federal regulations enforced by FinCEN, SEC and CFTC and applicable state laws as well as securities and commodity laws, fundraising securities transactions and real estate transactions as well as regulations related to investment companies, fund managers, broker-dealers and money service businesses.
Andrew will address some of the key legal and regulatory concerns related to cryptocurrency and blockchain technologies in this webinar, detailing current regulations as well as potential developments in this space.
Blockchain Law
As blockchain and cryptocurrency become more widespread, they present both opportunities and legal issues that require legal expertise to address. A blockchain lawyer provides clients with assistance navigating this thorny terrain while assuring compliance with local laws and regulations pertaining to them – including licensing requirements, anti-money laundering/KYC requirements and taxes.
Blockchain lawyers advise clients on fundraising methods such as initial coin offerings (ICOs). ICOs are a form of crowdfunding in which companies issue digital tokens to investors in exchange for capital, with lawyers helping clients structure them to comply with securities regulations and laws as well as intellectual property issues like securing patents and trademarks related to blockchain-related technologies.
Andrew Bull is one of the founding partners of Bull Blockchain Law in Philadelphia, which specializes in blockchain and cryptocurrency law. Recently featured by The Legal Intelligencer as one of its experts in this emerging area of law. Prior to creating his firm, Bull created both a cryptocurrency mining operation and an investment fund; his extensive industry knowledge, combined with legal and business experience has cemented him as a premier expert on this matter.
FinTech Law
FinTech Law is an emerging area of legal practice focused on financial technology (FinTech) and its laws that govern it. This field encompasses consumer and capital market laws, data protection regulations, intellectual property issues and corporate regulation compliance; Fintech lawyers should have expertise in each of these fields in order to ensure compliance for their clients with relevant regulations.
FinTech Law is an essential area of study for anyone involved with business startups, finance or investing. This includes entrepreneurs, venture capitalists, banks and insurance companies as well as academics; MBA programs often include modules on FinTech Law while various masters programmes specialize in this topic.
FinTech law lawyers provide invaluable counsel and legal guidance for startups, existing businesses and investors on matters pertaining to blockchain and cryptocurrency technology. Their legal advice allows clients to navigate the regulatory requirements in various jurisdictions while incorporating FinTech solutions into existing systems seamlessly. Furthermore, these legal specialists specialize in litigation as well as corporate transactions involving digital assets – an invaluable service indeed!
Andrew Bull is widely recognized as an authority on blockchain and cryptocurrency regulation within the US. He has published multiple works, presented at international conferences, created first blockchain-focused courses for graduate schools and law firms alike and boasts extensive expertise in securities law, broker-dealer services and FinTech.
Digital Assets Law
Digital assets are an emerging class of assets with many possible uses. They can serve as the basis for new securities like e-money or be transferred between parties to settle transactions. Furthermore, they have tax implications; specifically being considered taxable income under Section 1231 of the Internal Revenue Code as well as possible reporting requirements under FinCEN regulations.
Bull Blockchain Law LLP in Philadelphia was created as a response to an industry need: cryptocurrency and blockchain regulation across jurisdictions to ensure compliant and efficient raises. Their team also assist investors with risk management while offering regulatory clarity in this emerging sector.
Since establishing his firm in 2018, Bull Blockchain has quickly established himself as a pioneer of blockchain and cryptocurrency regulation in the United States. He has spoken at conferences throughout the country and published research related to his field. Furthermore, he serves as an adviser for cryptocurrency mining companies while simultaneously operating his own private digital asset investment fund.