Members of the United Kingdom’s Digital, Culture, Media and Sport Committee have opened an inquiry to hear from the public on the potential benefits and risks of nonfungible tokens, or NFTs, and blockchain on the country’s economy.
In a Nov. 4 announcement, the DCMS committee said its inquiry was related to the sudden growth of the NFT market, responding to fears the assets may be overvalued and at risk of the bubble bursting. According to the committee, NFT regulation in the U.K. is “largely non-existent,” with the DCMS planning to assess the assets ahead of a review by the treasury department.
What are the risks, and benefits of NFTs and the wider blockchain? We want to consider whether NFT investors, especially vulnerable speculators, are put at risk by the market and whether there is a need for regulation. For more details see https://t.co/C93XGBV7Ab pic.twitter.com/dvMTSwPYv1
— Digital, Culture, Media and Sport Committee (@CommonsDCMS) November 4, 2022
“NFTs swept through the digital world so fast that we had no time to stop and consider,” said committee chair Julian Knight. “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.”
The lawmaker added:
“Our inquiry will investigate…
