Meanwhile, the commercial lawyer also emphasized that even if the owners of a certain fractionalized NFT will earn, it will still not be considered as security because it is from the secondary market.
Atty. Padilla says do not promote it falsely as investments or as financial service.
However, the royalties should only go to the NFT artists, creators, and founders. This is because when the royalties of an NFT go to its retail investors, it is considered as security, an entirely different process.
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Developers & influencers have the civil liability to be responsible for those who fell victims, no matter the reason behind the rug pull.
He reiterated that not having the License to Transact Business by the SEC will only result in limited privileges in the country.
Even if the market speculates, the fact that an asset is speculated on does not make it a security.
From property rights to IP Code, here’s everything you need to know about NFT laws and crypto art regulation in the Philippines.