It should be noted that purchasing an NFT will not grant you any copyright in any digital assets and can be copied endlessly.
So all you get is a link to where the work is hosted. When that link is offline, the digital asset is gone. NFTs are crypto assets, so they are prone to money laundering. It is even argued that the use of blockchain-based technology, in general, contributes to global warming, as verifying every transaction on the blockchain requires a lot of energy.
However, the biggest obstacle to NFT trading is the legal validity of cryptocurrencies in India because, as previously stated, NFTs are only tradable in cryptocurrencies.
Cryptocurrencies are not illegal in India, but there are no regulations in place to govern crypto transactions. A question of concern is also whether India will legalize cryptocurrencies after a Reuters report earlier this year claimed that India could make crypto transactions illegal.
China, for example, has just imposed a general ban on mining and crypto transactions, Reuters reported.
Dharmvir Brahmbhatt and Devarsh Shah, students at Gujarat National Law University, say that the legality of NFTs in India is uncertain and that in addition to the chaos there is the belief that trading in NFT is not allowed under the Securities Contract (Regulation) Act, 1956 (“SCRA”).