Home CryptocurrencyBitcoin UK lawmakers launch probe into NFT regulation – ‘there are fears the bubble may burst’

UK lawmakers launch probe into NFT regulation – ‘there are fears the bubble may burst’

by SuperiorInvest

Members of the UK’s Digital, Culture, Media and Sport Committee have launched an inquiry to inform the public about the potential benefits and risks of non-fungible tokens, or NFTs, and blockchain to the country’s economy.

In a notice dated November 4, the DCMS committee he said his question was related to the sudden growth NFT marketin response to concerns that assets may be overvalued and at risk of a bubble bursting. NFT regulation in the UK is “largely non-existent”, according to the committee, with DCMS planning to assess the assets ahead of a review by the Treasury.

“NFTs have swept through the digital world so quickly that we haven’t had time to stop and consider,” said committee chairman Julian Knight. “Now that the market is spinning wildly and there are fears that the bubble may burst, we need to understand the risks, benefits and regulatory requirements of this disruptive technology.”

The MP added:

“Our inquiry will examine whether more regulation is needed to protect these consumers and wider markets from volatile investment. The inquiry will also help Parliament understand the opportunities offered by exciting new technology that could democratize the way assets are bought and sold.

Citing examples included NFT of Jack Dorsey’s first tweetThe committee called on users to submit evidence by January 6 to analyze the benefits and risks of the technology to the economy. DCMS reported that global NFT sales were roughly $17 billion at the end of 2021, but fell by more than 90% from August 2021 to March 2022.

Related: The UK cannot afford to send mixed messages about cryptocurrencies

The UK government also progressed its Financial Services and Markets Bill, which aimed to expand the country’s regulatory framework to stablecoins. Prime Minister Rishi Sunak, though he had been in office for less than two weeks, before expressed their support for the creation Royal Mint NFT and UK establishing central bank digital currency.

Source Link

Related Posts

%d bloggers like this: