Choosing the optimal jurisdiction for an NFT project

Choosing a country for company registration is one of the most important stages of any NFT-related project. When choosing an NFT jurisdiction, the following aspects are most often paid attention to:

• price;
• ease of registration;
• taxation;
• reputation of the country.

Our work is based on a detailed analysis of your needs. This issue requires an individual approach. If this is your first project, it is better to turn to professionals right away. They will compare your goals and needs with the laws of foreign countries.

What legal aspects are taken into account when choosing an NFT jurisdiction?

Legislation in the field of copyright. The most important point, since this type of token cannot be replaced by anything. NFTs containing personal information may violate data protection laws. All this must be taken into account and understood. 

Taxation. Crypto assets are always under closer scrutiny by the tax authorities. 

Issues of hereditary transfer of this type of assets. The longer NFTs exist, the more often lawyers are faced with the question of how to deal with them after the death of the owner. 

The question of choosing a country for NFT: which are the most and least favorable?

In our opinion, options for creating a legal entity for NFTs in Estonia, Lithuania or England may be quite good.

When buying an NFT token, the user acquires a certificate for the work. In this case, the work itself does not move anywhere. It is located on the eternal storage (IPFS), that is, these are just lines of code.

An NFT token is compared to a painting, which may belong to a gallery, but can still be viewed in a catalog. It is for this reason that it is so important to understand the legal principles on which copyright is based in each particular country.

Even a lawyer, if he does not specifically specialize in this branch of law, may not know the answer to the question of which jurisdiction to choose. Therefore, our projects are supervised only by lawyers with relevant specialization and experience. There are a lot of specific things here. It's not just profits that are at stake. In a number of countries, violations related to crypto assets provide for administrative and criminal liability. There are still some jurisdictions that do not recognize the legitimacy of cryptocurrencies at all. Fortunately, there are fewer of them. But even where they are allowed, there may be conditions that are far from profitable, increased control. For example, we are talking about the United States. We cannot recommend this jurisdiction in the first place.

At the same time, it is relatively easy to implement NFT in Singapore. There is a low tax burden and a good attitude on the part of the authorities and financial institutions towards crypto assets. The business climate in the country is generally loyal and open to everything new. So if we talk about those countries that are not in the EU, then it is worth considering this option. 

I want to choose jurisdiction for NFT

If you need expertise in NFT transactions, choice of jurisdiction, registration of a legal entity, we are always happy to help! Let us develop and implement your idea.