Highlights from NFT.NYC | Ingram Yuzek Gainen Carroll & Bertolotti, LLP

Chih-Hsun (Tim) Lin Tim practices corporate and business law, assisting clients with matters such as financing, private equity and mergers and acquisitions, as well as compliance with U.S. financial regulations, including the issuance of NFTs, sanction laws and money transfer regulations.

While the growth of NFT (and the market) and innovative ideas were the main focus of NFT.NYC, one of the things I got from a number of panels and events is the compliance issues that are subtle, yet fundamental to the activities related to coin, buying and selling of NFTs.

In addition to potential securities laws, coins, purchases and sales of NFTs are likely to be subject to anti-money laundering and anti-terrorist financing (AML / CFT) requirements due to the fact that (i) an NFT is by nature. a token and can have the same function as a “virtual asset” does (as described by the FATF’s targeted update on VA and VASP in June), and (ii) the mint and trade in an NFT more often than not involve the flow of cryptocurrencies. Furthermore, given that NFTs can now be pledged as collateral for loans disbursed in cryptocurrencies (thus facilitating the flow of funds conventionally regulated by AML / CFT laws), the use of NFTs in DeFi setting has been identified as a risk factor under current AML / CFT framework and is considered a potential loophole under such a framework. It is thus becoming increasingly important (especially for institutional participants such as NFT platforms) to accurately assess the risks associated with the use and trade of NFTs and understand how such risks can result in implications. And for anyone intending to enter the NFT area, they must now consider aspects other than conventional legal and fiscal considerations. ‘

Mioko C. Tajika Mioko practices commercial litigation with a special focus on intellectual property litigation involving copyright, trademark and publicity disputes. Mioko also provides advice on the proper use and enforcement of intellectual property rights.

I attended the NFT.NYC conference in New York which was held during the week of June 20th. To speak freely, the conference was a mix of hit or miss, which can be expected based on the large number of offers (given in 5-tot. -25-minute steps in 4 days that take place on many floors in several different arenas) , but overall an exciting (if not overwhelming) experience. Here are some things from the legal presentations offered at the conference: (1) The law on NFTs is still under development and strongly intertwined with the underlying technology, and there are a number of legal issues, including intellectual property rights, licensing and securities law. which should be on the radar of creators as well as buyers; (2) for example, a question that has been discussed concerns the transferability / enforceability of the NFT terms and conditions in the secondary market; and (3) a possible way of closing this loop may be to prepare the terms and conditions in a manner that restricts the buyer’s freedom to sell so that the original terms and conditions are complied with by the subsequent buyer.

Rachel J. Hong Rachel has experience in representing clients’ contract disputes, professional liability lawsuits, housing association cases, derivative lawsuits, class actions and cases involving construction defects. In addition to her legal background, Rachel holds double degrees in mathematics and urban design and architecture studies.

Like Times Square, NFT.NYC was lively, fast-paced and full of people from all walks of life! It was, I dare say, vivace.

I set the tone for the three-day convention by attending the “How NFTs Will Save The Music Industry” panel where (from left to right) Emily Lazar (founder and singer of September Mourning), Kristin Doerrer (Vice President of Marketing at LGND), Michael Blu (co-founder of LGND), and Yoshi Kondo (A&R Engineer at Atlantic Records) shared their insights.

“We’ve come full circle.” The panel unanimously agreed that NFTs will allow consumers to own their music as they had previously done through vinyl records, CDs and mp3s. With the infinite number of streaming services available to us today, the day when streaming is curbed and ownership crescendos seem remote, but artists are pushing to regain the rights to their music. Panelists also predict that NFTs will provide ways for artists to engage with and return value to their fans in a more intimate way than is available today.

This feeling of greater community involvement certainly resonated throughout the week. When we want more, NFT.NYC deserves an extra issue!

Olivia Lee Jones Olivia practices general commercial litigation, and assists clients with a variety of business-related cases and disputes.

I started NFT.NYC 2022 by visiting Wu-Tang Legend, Method Man’s first cartoon NFT pop-up store! (TICAL UNIVERSE NFT POP-UP SHOP)

TICAL UNIVERSE is Method Man’s first cartoon NFT project. Method Man’s team hosted this event to commemorate the official launch of TICAL UNIVERSE on the Ethereum network and to debut the release of the “Iron Lung” NFT series. The first NFT release debuted in November 2021 in collaboration with TuneGO and Dapper Labs and contained the first five cartoon characters from TICAL UNIVERSE. “This Genesis NFT drop marks the beginning of the Tical Universe and the birth of the original Tical Universe characters. Collectors who purchase these original NFTs will own a piece of history,” said John Kohl, CEO of TuneGO. The NFTs feature artwork by renowned New York artists Alex Smetsky and Aleks Sinyuts and are the soundtrack of the instrumental version of Method Man’s single, “New Old School”. During the event, I had the opportunity to meet Alex and learn more about the TICAL brand. The event took place at Gallery 23 NY, a non-profit gallery group located in the heart of New York City’s art district. This was a fantastic event that showcased an incredible NFT project. Check out TICALNFT.com to learn more!