If you actively conduct transactions with virtual assets, including NFT and the already digitalized tokens and cryptocurrencies.
The issues of “going to Fiat”, financial monitoring, and taxation are often “painful”. To understand their essence and prevent problems, it is advisable to read the open consultation of Legal Support lawyers on financial control and monitoring in view of current legislation and regulations of the NBU.
Declaration and taxation by individuals of income from the sale of NFT and digital works of art, as well as from transactions with virtual assets, is carried out according to the general rules. The only thing that matters is the moment of income receipt – the moment of conversion of any virtual asset, its “sale for Fiat”. The taxation and declaration of virtual assets were discussed on the pages of our blog. These publications and consultations are still available for free viewing and study by visitors to the Legal Support website.
The answers to the questions are provided. And whether to invest in assets such as NFT is up to you. Admittedly, even with all the above caveats, the Non-Fungible Token remains a working tool used by both risky investors and real content creators, those who intend to draw attention to their business on the wave of hype, and fraudsters who easily sell what does not belong to them. Therefore, the transformation of NFT into something more than what it is now is a completely rational way of evolution.
This concludes the NFT legal review. And next time, the team of Legal Support lawyers will publish the material of legal advice on the legal regulation of certain business processes that are built on the blockchain and using its capabilities, including to avoid over-regulation. We actively support risky, but interesting processes, and share the acquired knowledge and experience with visitors to the site of the legal project Legal Support.