10 industry leaders’ tips for regulators as they start to scrutinize NFTs
Many outside the crypto industry first heard of nonfungible tokens only within the last year or so, with most mainstream coverage focused on the digital artwork market. Those not in the know may well have thought NFTs would amount to nothing more than digital collectibles. However, industry pioneers grasped the full potential of NFTs, and new applications are surfacing that could impact multiple industries.
As the value of NFTs as assets is realized, regulation is sure to follow — but it won’t be as simple as applying the rules established for more traditional assets. Below, 10 members of Cointelegraph Innovation Circle discuss some important facts regulators should understand as they start to scrutinize NFT markets.
NFTs are not only a new concept, but the blockchain technology behind them is complex. Regulators should be careful when attempting to group them into an existing framework. They should approach the NFT market with a willingness to learn and understand the underlying technology behind NFTs and the ways in which tokenization technology can be utilized to disrupt many industries. – Megan Nyvold, BingX
Regulators should understand that NFTs are not “one size fits all.” Their applications are incredibly wide-ranging, and rules that make sense to apply to one type of NFT may not make sense to apply to another. – Molly Glennon, Ditto
Say you go to a movie theater: You pay the entry fee, and they give you a piece of paper that grants you the right to watch the movie undisturbed — all good. Now, let’s save some trees (ESG, anyone?). Instead of issuing a paper ticket, the theater asks you to download an app (wallet) so they can send you an ERC-721 token that gives you the same rights as the piece of paper. How is that a
Read more on cointelegraph.com
