Members of the UK Parliament have launched a formal inquiry into blockchain and non-fungible token (NFT) technology to seek to properly regulate the space.
In a new announcement, the UK Digital, Culture, Media and Sport Commission (DCMS) To tell They conduct formal research into the risks, benefits and operations of NFTs and blockchain technology.
The commission says it is launching an investigation in response to the recent surge in NFT sales to top $17 billion in 2021.
DCMS also said it is launching an investigation in response to concerns that the NFT market may be a giant bubble on the verge of bursting.
Concerns are compounded by declining prices and sales of NFTs. His NFT in Jack Dorsey’s first tweet was originally sold for his $2.9 million. When it was relisted at auction, the highest bid he made was $280. Similarly, from August 2021 to his March 2022, his NFT sales each week dropped by more than 90% of his. ”
According to the announcement, current UK NFT regulation is virtually non-existent.
Julian Knight MP, Chair of the DCMS Committee, said:
“NFTs have taken the digital world by storm so quickly that there has been no time to stop and think. At a time when the market is undergoing a major turnaround and the bubble is threatening to burst, the risks, benefits and regulatory implications of this ground-breaking technology are becoming increasingly prevalent. You need to understand your requirements.
Investors, especially vulnerable investors, are at risk of being tricked into buying NFTs, whose value can plummet the moment they make the purchase. Our research explores whether greater regulation is needed to protect these consumers and the broader market from volatile investments.
The research will also help Congress understand the opportunities presented by exciting new technologies that could democratize the way assets are bought and sold. ”
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