UK Parliament opens inquiry into NFTs and blockchain technology to determine regulatory needs
Members of the UK Parliament are opening an official inquiry into blockchain and non-fungible token (NFT) technology in a bid to explore the proper regulation of the space.
In a new announcement, the UK Digital, Culture, Media and Sports Committee (DCMS) says it is holding an official inquiry into the risks, benefits and operation of NFTs and blockchain technology.
The committee says it is opening the inquiry in response to the recent boom in NFT sales, which topped $17 billion in 2021.
DCMS also says it is opening the investigation in response to concerns that the NFT market may be a giant bubble on the verge of collapsing.
“Fears have been compounded by falls in NFT prices and sales: the NFT of Jack Dorsey’s first ever tweet sold for $2.9 million; when it was relisted at auction, the highest bid was $280. Similarly, weekly NFT sales fell by more than 90% from August 2021 to March 2022.”
According to the announcement, current UK NFT rules are virtually non-existent.
Says Julian Knight MP, Chair of the DCMS Committee,
“NFTs swept through the digital world so quickly that we didn’t have time to stop and assess. Now that the market is swinging wildly and there are fears that the bubble might burst, we need to understand the risks, benefits and regulatory requirements of this ground-breaking technology.
Investors, especially vulnerable ones, are at risk of being duped into buying NFTs whose value may hold at the time of purchase. Our investigation will examine whether greater regulation is needed to protect these consumers and broader markets from volatile investments.
This inquiry will also help Parliament understand the opportunities presented by an exciting new technology that could democratize how assets are bought and sold.”
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Featured Image: Shutterstock/sdecoret/Mingirov Yuriy
