SEC is serious about the NFT regulations and the compliance. And they are going to make the NFTs more chargeable and controlled under the taxes. Which would affect the market and the people who happen to use the NFTs for the use case.
NFTs are an interesting concept on the blockchain. They have made money for variety of the projects. And in fact many blockchain games work by the use of the NFTs. However SEC wants to rain on the party.
SEC wants to regulate the NFTs and they don’t want you to sell the NFTs without paying the taxes. And so you would find that SEC is on the trail of many US based NFT projects who make money off it.
Flyfish Club is one restaurant which has the NFT menu and they are mixing the resto experience with the NFT. And they made decent money off the subscription and the NFT menu items.
SEC has decided to sue them for the usage of the NFTs for business as per the tweet.
Total 1600 NFTs sales were recorded in this lawsuit and based on that 750K were fined here as well and the SEC decided to further get the FFC club into the digital assets sales too along with subscription.
So by getting into the digital asset without being compliant is going to hurt you. So you can sell such stuff by being anonymous in DeFi . But if you come out with face you would be subjected to compliance and regulation fees.
In short, projects and the people who choose to do business with NFT, make sure to use govt compliant chains and use legal means to do such business. So you would get taxed and govt can’t hurt you any further.
In short, things are kind of only illegal as long taxes are not paid. So decentralization is going to get people sued if they make money off digital assets.
