The Israel Tax Authority has released a notice stating that non-fungible tokens are taxable assets. Learn more about this decision and what it means for the future of blockchain taxation.
NFTs, or non-fungible tokens, are unique digital assets and cannot be replaced. They are often used to represent items such as art, collectibles, game items, and other digital assets.
Non-fungible means that each NFT is unique and not interchangeable with another NFT. In contrast, fungible assets like money or commodities can be easily exchanged for one another because they are all of equal value.
NFTs are stored on a blockchain, a digital ledger that records all transactions made using cryptocurrencies. When an NFT is created, it is assigned a unique code that is stored on the blockchain. This code contains information about the NFT, such as who owns it and what it represents.
History of NFTs