Zach Burks, CEO of Mintable, recently spoke out against the U.K. government’s approach to regulating non-fungible tokens (NFTs). In an interview, Burks claimed that regulators are missing the multifaceted nature of NFTs.
“They are not just volatile digital pictures; they have broader utilities,”
Zach Burks, CEO of Mintable
Burks’ comments come after a report by the U.K.’s Culture, Media and Sport Committee suggested the government clamp down on NFTs for their role in copyright infringement. Although the report pushes for stronger intellectual property rights, it considerably narrows down the scope and potential of NFTs. According to Burks, such a view is not only outdated but detrimental.
More Than Just Artwork
Interestingly, Mintable itself takes the issue of copyright infringement seriously. The platform uses a specialized IP protection algorithm to guard against plagiarism. “It’s crucial, but it’s not just an NFT issue; it’s an internet issue,” Burks stated. He elaborated that pointing fingers solely at NFTs for copyright issues is unfair when platforms like WordPress, YouTube, and Spotify face similar challenges.
However, the difficulty lies in overcoming these challenges. Even tech giants like Google struggle with enforcing copyrights. “If they haven’t solved it, why is the onus on the NFT industry?” questioned Burks.
A More Nuanced Understanding Required
Burks, who regularly corresponds with U.K. officials, said it’s crucial for regulators to adopt a more nuanced understanding of NFTs. From car records to bank settlement documents, NFTs can serve various purposes. “A single regulatory framework can’t cover the vast applications of NFTs,” he cautioned.
The CEO is also concerned about the U.K. government’s willingness to adopt EU directives on NFTs. “This is dangerous. Regulating NFTs like digital art would stifle the broader applications,” he warned. Burks cited Singapore’s approach on regulations, where NFTs are judged by their specific use-cases, as a more sensible way to proceed.
When you view NFTs as just artwork or a speculative asset, you are essentially limiting their scope—much like looking at the Edison light bulb and ignoring the evolution into Teslas. “When you try to slap a single regulatory rule on NFTs, you risk curbing innovation,” Burks cautioned.
He also spoke about the committee’s recommendation to implement Article 17 of the European Union Directive on Copyright for regulating NFTs. “That’s like saying Edison’s bulb and Tesla’s car should be under one regulatory umbrella,” he critiqued.
Food for Thought: Are We Regulating the Future or the Past?
As NFTs continue to revolutionize digital ownership, asset management, and even legal documentation, is it prudent to stick to age-old definitions and regulatory frameworks? If U.K. regulators follow a narrow directive, will they be placing unnecessary limitations on a technology whose potential we’ve only started to uncover? Must we limit blockchain, smart contracts, crypto, and NFTs? While safeguarding copyrights is paramount, stifling innovation is a cost we can’t afford. Hence, as we ponder over regulations, it might be wise to first understand what we are actually trying to regulate.