US Government Efforts To Build Trust Through Collaboration With NFT Industry

JAKARTA - The United States Department of Finance recently released a report on non-fungible tokens (NFT) on May 29, 2024. This report not only reveals the vulnerability of the NFT sector to illegal activities such as fraud and money laundering, but also offers progressive solutions through cooperation between governments and industry players.

The Rise Of NFT Fraud

The report highlights that NFTs, which have reached a trading volume of nearly 13 billion US Dollars (approximately IDR 211.315 trillion) in a year, are easy targets for fraudsters who take advantage of security loopholes on NFT platforms. NFT's Mutant Ape Planet scandal in 2023 is one concrete example, in which buyers were tricked to 2.9 million US Dollars (approximately IDR 47.139 million) due to never-fulfit sweet promises.

The US Treasury Department emphasizes the importance of synergy between governments and industry to create regulations that can increase NFT market security. Consumer education is also a priority, given the large number of investors who do not fully understand the rights and risks associated with NFT investment.

With the recommendations provided, the US Treasury Department hopes to trigger discussions and actions that will take the NFT market in a more mature and reliable direction. This collaborative move is expected to create a safe and transparent NFT ecosystem, as well as build a strong foundation for future technological innovation.

Global View Of NFT

According to CoinDesk, one of the leading crypto media, NFT fraud cases has become a hot topic among investors and market observers. Their in-depth analysis shows that increased consumer awareness and education can be key to preventing further fraud.

In addition, U.Today, Dubai-based global media organization, also highlighted that although blockchain offers transparency, its vulnerability to cyberattacks is still a big challenge. They emphasize the importance of international cooperation in strengthening blockchain security.

Thus, through the collaboration between the government and industry players of NFT, it is hoped that users can feel the safety and comfort of investing in NFT.