The nature of non-fungible tokens capabilities raises important tax, accounting and regulatory considerations.
Blockchain technologies and innovative ways of conducting business have continued to flourish over the last several years. In particular, in 2021, there has been a significant increase in activity with respect to non-fungible tokens (NFTs). Many media and entertainment (M&E) entities are utilizing these tokens as a means to further monetize existing assets (e.g., movies, music, video games, personal images, art).
As NFT transactions continue to gain popularity, there are some key considerations that M&E entities selling NFT may want to be mindful of as they continue to enter into these arrangements. Read our Monetization of non-fungible tokens publication for more details.