Where Bitcoin was hailed as the digital answer to currency, NFTs are now touted as the digital answer to collectibles. But there are plenty of skeptics who think it is all a bubble that is going to burst.

The structure of NFTs—modeled after artwork rather than currencies or shares—implies they are not subject to the same financial regulation as other types of crypto. However, they still risk falling afoul of intellectual property law and consumer protection laws.

Anyone entering the world of NFT art will need to seriously consider it from the perspective of taxation, corporate structure, and intellectual property.