NFT Governance in the UK: Parliament Kicks Off an Inquiry
In Brief
The UK Committee highlights a significant absence of regulation surrounding NFTs.
The inquiry aims to learn about NFT operations, potential risks, and any advantages associated with NFTs and blockchain technology.
The DCMS Committee has set forth a 'Call for Evidence' concerning NFTs, inviting contributions from individuals, organizations, and stakeholders well-versed in blockchain and non-fungible tokens.
The British government is seeking responses to four key questions regarding NFTs until January 6, 2023: invites citizens to submit answers Is the UK's current regulatory approach to NFTs adequate?
What risks might NFT speculation pose to vulnerable individuals?
Do blockchain technologies provide sufficient security for UK investors?
What potential advantages does NFT speculation offer to both individuals and society at large?
The inquiry reveals that the current regulatory landscape for NFTs in the UK is nearly nonexistent, prompting the government to assess the necessity for such regulations.
It’s worth noting that NFTs experienced a massive surge in popularity around March 2021, with sales exceeding $1.7 billion by year-end. However, the present state of the NFT market looks grim: weekly sales have plummeted by over 90% from August 2021 to March 2022. For instance, the NFT of Jack Dorsey’s tweet initially sold for a staggering $2.9 million but faced a dramatic decrease in value when re-auctioned, with the highest bid only reaching $280.
The official news report The chair of the DCMS Committee, Julian Knight MP, expressed, 'NFTs surged into the digital landscape at such a rapid pace that we hardly had time to analyze their implications. Now, as the market displays erratic behavior and concerns of a bubble burst arise, it becomes essential to evaluate the risks, advantages, and necessary regulations of this innovative technology.' NFT sales decreased Knight expressed worry about investors facing financial setbacks after purchasing NFTs, as their worth can fall abruptly. Regulatory measures could serve to safeguard consumers and stabilize markets against unpredictable investments. He emphasized, 'This inquiry will also help Parliament explore the exciting possibilities that this revolutionary technology presents, potentially reshaping how assets are exchanged.'
Following the election of crypto proponent Rishi Sunak as the UK Prime Minister, there are hopes that the nation could adopt a more friendly stance towards crypto and embrace Web3 innovations. Earlier in the year, Sunak put forward ideas to position the UK as a 'crypto hub,' but the suggestions faced some criticism.
The White House has unveiled a detailed framework aimed at regulating digital assets, which encompasses both cryptocurrencies and NFTs.
Robinhood's crypto division has reached a $30 million settlement with the New York Department of Financial Services over internal staffing issues.
Bose collaborates with Warner Records UK to introduce a new NFT collection. to launch governmental NFTs Please note that the information shared on this page is intended for informational purposes only and should not be considered as legal, tax, investment, financial, or any other type of advice. It is crucial to only invest what you can afford to lose and to consult with independent financial advisors if you have any uncertainties. For further details, we recommend reviewing the terms and conditions as well as the help and support sections provided by the issuer or promoter. MetaversePost is dedicated to delivering accurate and impartial reporting, though market conditions may change without notice.
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