Yuga Labs Takes a Stand For Artists; NFTs Legal in South Korea?

Yuga Labs, the creative force behind the wildly popular NFT collections like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), is making waves in the NFT world. In a bold move, they’ve decided to cut ties with marketplaces that don’t prioritize creator royalties. 

In a recent announcement on X (formerly Twitter), they declared that certain NFT collections would only be available on marketplaces that “respect creator royalties.” 

Yuga Labs’ decision isn’t a blanket withdrawal from all marketplaces. Instead, it strategically targets platforms that don’t enforce creator royalty structures. This means collections like Sewer Passes, HV-MTL, 10KTF, and Otherside will now exclusively trade on platforms that uphold creator rights. This action directly aims to positively impact creators’ financial sustainability within the NFT ecosystem.

Interestingly, Yuga Labs’ move coincides with the launch of Magic Eden’s Ethereum-based marketplace. According to Yuga Lab, Magic Eden’s contractual enforcement of royalty aligns with Yuga’s vision—a return to a creator-led Web3. 

Beyond the immediate impact on specific marketplaces, Yuga Labs’ decision holds broader implications for the future of the NFT ecosystem. By prioritizing creator rights, Yuga Labs incentivizes other marketplaces to adopt royalty structures, ultimately fostering a more sustainable and equitable environment for all participants. This, in turn, could contribute to attracting and retaining talented creators within the NFT space, fostering innovation and further development.

South Korea’s NFT Dialogue with Gary Gensler

Meanwhile, in South Korea, financial authorities are engaging in a critical conversation surrounding NFTs. The country’s Financial Supervisory Service (FSS) chairman, Lee Bok-hyun, plans to discuss NFTs with Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC) to determine whether NFTs should be officially recognized as virtual assets.

Currently, South Korea lacks clear legal definitions for NFTs. Even as NFTs gained popularity, they were excluded from the scope of virtual assets in upcoming South Korean laws. Lawmakers deemed the risk associated with NFT markets relatively low, given their primary use for collection purposes. 

While the FSS has clarified that the meeting’s schedule and the agenda have not been confirmed yet, the potential meeting can be a pivotal moment— one that could shape how NFTs are understood and regulated not only in South Korea but potentially on a global scale. The outcome of this dialogue could set a precedent for how other countries approach the regulatory landscape surrounding NFTs, potentially impacting the entire industry’s future trajectory.

From the actions of Yuga Labs and potential South Korea-US discussions, it’s evident that the NFT space is undergoing a period of significant transformation. 

These developments highlight the growing need for establishing clear guidelines and fostering a sustainable ecosystem that benefits creators, empowers the NFT community, and fosters responsible innovation within this dynamic digital space.