UK Parliament Committee Opens NFTs Inquiry

As a first step toward the nation’s first NFT law, a panel inside the UK’s House of Commons initiated an inquiry into the advantages and disadvantages of non-fungible tokens (NFTs).

Parliamentarians will investigate if NFT investors, especially vulnerable speculators, are put at risk by the market, according to a statement from the committee in charge of the Digital, Culture, Media & Sport Committee.

Chair of the DCMS Committee, Julian Knight MP, said in the release:

“NFTs swept through the digital world so fast that we had no time to stop and consider. Now that the market is veering wildly, and there are fears that the bubble may burst, we need to understand the risks, benefits, and regulatory requirements of this groundbreaking technology.

Investors, especially vulnerable ones, are at risk of being swindled into buying NFTs whose value may tank on the moment of purchase. Our inquiry will investigate whether greater regulation is needed to protect these consumers and wider markets from volatile investments.

This inquiry will also help Parliament understand the opportunities presented by an exciting new technology which could democratise how assets are bought and sold.”

The investigation’s findings will probably lead to regulation suggestions, which the Treasury will examine.

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