General Counsel of FTX: NFT consulting rights violation is our biggest problem

General Counsel of FTX: NFT consulting rights violation is our biggest problem

Since web3 and NFT areas continue to grow, the infrastructure does not grow to the same extent, which for many lawyers in this area.

The biggest problem with which the centralized NFT exchange FTX is confronted is to ensure that users only list content that they actually have, Ryne Miller, General Counsel of the Stock Exchange, said during a panel discussion on the Cornell Blockchain Conference in New York on Friday.

"'Right-clicking, saving' thing is the problem," he said, referring to how people can copy another NFT (not fungbles token) and shape it as their own. "Our biggest problem is to ensure that people do not list NFTs for which they do not have copyrights or other intellectual property they need, and this is a very manual process. It takes a lot of effort and energy."

A possible solution, said Miller, could be a community-controlled, incentive-based moderation system, in which users, similar to open sea ’, of verified collections.

The concept does not differ significantly from what currently exists in the legal system, referred to other discussion participants.

"Ultimately, intellectual property is that society recognizes that this thing is real and this is not real," said James Rathmell, General Counsel at Haun Ventures. "I mean, it is a license granted by the government, but in the end it is the society that agrees with what things they have and what things they do not have."

consumers must also be aware if they interact with these marketplaces, said Miller, but consumer protection laws will come at some point, and platforms should be prepared.

"Tell the buyers, they should do their own research, that would solve this problem," he said. "'Make your own research' is a good solution, but governments and consumer regulators have to intervene beforehand."

Some NFTs are designed in such a way that they have a benefit so that a copy can look the same, but are not accepted by smart contracts that are tailored to an original. This opens up the possibility of authentication that is not available in other forms of digital art.

The room moves much faster than regulation, Rathmell agreed. Web3 platforms and regulatory authorities must be aware of the risks they are trying to reduce.

"You have to bring this information onto the market so that everyone is on the same field," he said.

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The contribution FTX General Counsel: NFT consulting law violation is our “biggest problem” not financial advice.