The Ministry of Communication and Information Collaborates With 2 Institutions To Supervise Platforms With NFT Transactions

UNSPLASH ILLUSTRATION

JAKARTA - Lately, social media has been shocked by the Non-Fungible Token (NFT) phenomenon which has become increasingly popular since the viral selfie of Sultan Gustaf Al Ghozali which was selling well on the OpenSea marketplace.

However, the Ministry of Communication and Information (Kemenkominfo) reminded and asked platforms that provide NFT payment transactions not to facilitate the dissemination of content that violates laws and regulations.

"Both in the form of violations of the provisions on the protection of personal data, to violations of intellectual property rights," said Ministry of Communications and Informatics spokesman Dedy Permadi in his statement, Sunday, January 16.

The regulation referred to by Dedy is Law Number 11 of 2008 concerning Information and Electronic Transactions as well as its amendments and implementing regulations.

The regulation requires all Electronic System Operators (PSE) to ensure that their platforms are not used for actions that violate laws and regulations.

"Violations of existing obligations can be subject to administrative sanctions, including termination of platform access for users from Indonesia," said Dedy.

Dedy stated that the Minister of Communication and Informatics, Johnny G. Plate, had also ordered the relevant ranks to oversee the activities of NFT transactions taking place in Indonesia.

Not only that, but his party will also coordinate with the Commodity Futures Trading Supervisory Agency, Ministry of Trade (CoFTRA) as the authorized institution in the governance of crypto-asset trading.

"The Ministry of Communication and Information also urges the public to be able to respond to trends in NFT transactions more wisely so that the economic potential of using NFT does not cause negative impacts or violate the law, and continue to improve digital literacy so that they are more proficient in using digital technology in a productive and conducive manner," explained Dedy.