UK asks public if minimal NFT regulation will suffice

NFT

UK Parliament has requested the general public to weigh in on non-fungible token (NFT) regulation amid tanking gross sales and depreciating worth.

An inquiry was launched on Thursday by the Digital, Tradition, Media and Sport Committee (DCMS) into NFTs and the broader blockchain. Members of Parliament from a number of events have been requested to contemplate the dangers to NFT buyers, but additionally the advantages that NFTs may supply the UK economic system.

“NFT regulation within the UK is basically non-existent,” the inquiry reads. “Progress has additionally sparked fears the NFT hypothesis could also be a bubble, and that overvalued belongings could also be dumped on ‘larger idiot’ buyers,” (our emphasis).

The inquiry cites how an NFT of Jack Dorsey’s first ever tweet was offered at public sale for $2.9 million — however solely attracted a high bid of $280 when crypto entrepreneur Sina Estavi relisted it in April. Nonetheless, final month Estavi tweeted to point out a brand new supply of 65 ETH (value $103,000 at press time) had been submitted.

Learn extra: These six-figure NFTs are down 99%

The chair of the DCMS Committee, Julian Knight MP, commented: “NFTs swept by way of the digital world so quick that we had no time to cease and think about.” Knight went on to clarify how the inquiry will decide “whether or not larger regulation is required to guard these customers and wider markets from unstable investments.”

Members of the general public might ship in feedback on-line till January 6, 2023. The decision for proof poses these questions:

• Is the UK’s light-touch NFT regulation enough?
• What are the potential harms to weak individuals of NFT hypothesis?
• Do blockchains supply safety to British buyers?
• What are the potential advantages to people and society of NFT hypothesis?

The DCMS inquiry was launched amid a nationwide scramble to stand up to hurry with cryptocurrency. The UK police invested 100 million right into a crypto activity pressure final month — but say it’s not almost sufficient to crack down on quickly rising crypto crime.