NFT's Scenario in India

Non-Fungible Tokens

NFT'S SCENARIO IN INDIA Finlaw Consultancy Pvt Ltd.

SUMMARY Non-fungible tokens or NFTs are part of a multi-billion dollar industry that seems to be growing steadily. NFT has been on the market for a few years but in the recent past, the mainstream has been known in the market. They are incomparable or “one-of-a-kind” digital assets that can determine ownership and determine the value of an original digital asset such as original images, videos, or audio.

Blockchain technology on these assets of NFT, such as ether and smart contracts, such as bans, protects them by creating a unique digital platform using smart chains. NFTs are digital repositories that open portals for new crypto viewers. They have embraced the world with their growing economic, economic, social, and cultural importance. Digital assets appear to be capturing the “trend” market of this era not only for famous artists and creators to get more revenue for their art pieces but also for the development of a new serial connection.

The general public has also helped to get a strong response from NFT creators and customers. At the current time NFT in India is trending the whole market.

ACCORDING TO MARKET According to a Reuters report, the market recorded $ 2.5 billion for NFT in the first half of 2020.1. NFT is a digital asset for which uniqueness can be determined by using a high-tech technology related to Distributor Laser Technology (DTL). Allows simultaneous access and valid data with record updates Since NFTs are mainly part of the "ment" collection, they cannot be edited or deleted once it is formed.

Have they gained a popular attraction for themselves in the digital space of NFT that is likely to digitize the unique physical assets they hold? If its behavior is to be judged, should all physical assets be tokenized as fungible tokens because they hold unique significance within themselves? What has been observed in the cryptocurrency scenario is that these NFTs can enable better commercialization of unique assets that are difficult to sell or own. Although there are many other digital assets, NFT has time and is likely to double ownership so that every NFT buyer can enjoy the benefits of that underlying asset proportionately.

If we look at the origins of these digital tokens, we will go back to the artist Bipal, who sold an art piece called “Everyday: The First 5000 Days” for $69 million. Since then, we have seen spectacular growth in the NFT market where more and more people seem to be interested in investing and buying the original work of many artists.

FEATURES OF NFT NFTs are fundamentally different from cryptocurrencies such as bitcoin which is different and therefore fungible. There are NFTs on the blockchain that cannot be duplicated or used It also gives people easy proof of its authenticity.

FUNGIBILITY The ability to exchange money or property freely because they are the same. For example, the value of a 100 rupee note will always be the same as the value of another 100 rupee note.

Similarly, in cryptocurrency, the price of one bitcoin is the same as the other bitcoin. On the other hand, not every NFT is incomparable and different, and therefore, they cannot be exchanged as -2.

ROYALTIES COLLECTION Smart contracts can come with NFT’s automated royalty generation system through smart contracts. Such technology will automatically transfer the pre-determined amount of resale-sale income to the original creator of the property.

ORIGINALITY NFT is designed to claim property for the buyer of the property. Although others can use the same image, audio, or video file, the artist has the right to retain the copyright and holds other production rights as other physical assets.

Example - Anyone interested in buying a "Monet" print can have the freedom to do so, but only those who have the original can control its own and enjoy all other rights.

NFT AT THE NATIONAL LEVEL At the national level, NFT is properly traded because DLT platforms generally work well outside the global boundaries. The main concern for many providers and advisors is usually to determine the legal and regulatory framework. NFT has also been named as a game of ultrarich, whose sole purpose is to position the status quo instead of a healthy investment. A concern surrounding NFTs, which has accelerated the response of regulatory authorities around the world, is the possibility of illegal activities that could be anonymous by cryptocurrency. The Financial Action Task Force has expressed concern over the Non Fungible Token, which could facilitate money laundering or terrorist fund activities.

WORLDWIDE INVESTOR'S Investors worldwide have come to believe that NFT is full of market supply and speculation that allows them to make money fast. This has sometimes caused price volatility across the country Although it is difficult to build an NFT, the general concern of the world is that NFTs are not free from bad games. Some bogus individuals create many accounts to artificially increase that value using the “pump and dump” method. The nations have unanimously recognized that it is now too soon to decide whether a long-term investment in NFT or a part of "trend" 3.

Investors have consistently advised individuals interested in blockchain transactions that trends change very quickly and create a lack of track records that add uncertainty and market imbalances. It is important for people around the world what these NFT offers are and what they are worth. Others argue that cryptocurrency assets are "electronically secured, digitally represented value or contractual rights that use a form of distributed laser technology and are electronically transferred, stored or traded by the Money Laundering Rules, 2017". This means dealing in related activities Cryptocurrency-related properties require registration.

REGULATIONS IN INDIA India is currently in the process of building strong NFT rules According to a report by Nascom, the Indian public sector has consistently supported blockchain-based businesses involving more than half of the country's population. This may change once the cryptocurrency ban and the Official Digital Currency Bill, Regulation is passed. Under the bill, cryptocurrencies in India are prohibited from mining, producing, holding, selling, trading, providing, transferring, disposing or disposing of cryptocurrencies in India.

The "Cryptocurrencies" Bill defines that any information or code generated through cryptography is not part of any Official Digital Currency and provides a digital representation of the value of the Promised or Underlying Value. Any business activity that acts as a risk of loss or loss of profit or income, or as a unit of value store or account, and includes its use in any financial transaction or investment, but not limited to, investment plans. Provide a digital presentation of an underlying value of NFT, which may fall under “cryptocurrency”.

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