There has been a rise in concern about the regulation of transactions within this space due to non-fungible tokens being used as digital legal tender. This is because most transactions take place without any regulation. There have been many instances of fraud and theft, as well as impersonations, in the area. Most people involved in these activities do not face any consequences. Some cases have shown this, such as the one involving Mr. Todd Kramer in New York. A fraudster stole NFT artworks and then tried to sell them on NFT Marketplace. These examples highlight the necessity for regulatory oversight for digital asset trading. It is for this reason that the Securities and Exchange Commission recently released regulatory plans, which required participants to NFT marketplaces be licensed before trading.

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The rationale for the new rule, according to the SEC, is that while NFTs are not expressly defined under the Digital Assets Business Act, their function as a legal tender in the digital sphere representing an owner’s ownership or right in certain distinct digital assets such as arts, images, music, or collectibles resembling investment tokens, makes them subject to the supervision of the SEC under the law. The new rule states that NFTs are subject to scrutiny on an individual basis. This will depend on their circumstances and nature. The NFT that is used for fundraising must be listed on an exchange, or market place, to obtain a license for trading tokens.

Akalarp Yomwilai (co-founder and chief executive officers of Zipmex Thailand), an NFT trading platform for NFT, said that recent SEC plans were welcome. They will help boost confidence among NFT sector investors, if regulators properly supervise them. But he warned that the plans of the SEC would face resistance from some within the NFT industry, who might see it as an interference in their liberty.

There are generally four NFT markets in the country: Coral NFT1, Bitkub NFT and JNFT. Axie Marketplace is the largest international NFT market. OpenSea and Larva Labs/CryptoPunks are also important. Rarible and NBA Shot Marketplace.

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