- The DCMS committee emphasized that the NFT regulation in the U.K. is extensively nonexistent, and lawmakers have plans to assess these digital assets.
- The members of the U.K.’s DCMS have opened an inquiry to listen from the public on the potential advantages and risks associated with NFTs or blockchain.
- This has come since the market is swerving wildly, and there is fear that the bubble might burst.
In a recent announcement made on the official Twitter handle of DCMS, Digital, Culture, Media, and Sport Committee, it was revealed that the NFT regulation in the U.K. is vastly nonexistent. The announcement further revealed that lawmakers have plans to facilitate the assessment of the assets ahead of a review by the treasure 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
The members of the DCMS committee have recently opened an inquiry in order to hear from the public on the possible advantages and risks associated with NFTs or blockchain on the economy of the country.
As revealed, the inquiry was in relation to the drastic and quick growth of the NFT market, and it came in response to the fears like the assets may be overhyped and overvalued and at risk of the bubble bursting. In accordance with the committee, the regulation of NFTs in the U.K. is vastly nonexistent, and there are plans in consideration to assess the assets following a review by the treasure department.
Julian Knight, the Committee Chair, shared some thoughts on the same and said that the NFTs managed to sweep through the digital world so fast that there wasn’t enough time to stop and think.
As we can already see that the market is behaving wildly, and there is a fear of cloud above our heads scaring us that the bubble might burst. That’s why it is becoming increasingly important to assess the benefits, risks, and regulatory requirements of this state-of-the-art technology.
In accordance with the statement released by the lawmaker, it was revealed that the inquiry would be investigating whether there is a requirement for greater regulation in order to provide protection to these consumers and wide markets from fluctuating investments.
The committee even cited examples such as the first tweet NFT of Jack Dorsey and encouraged consumers to submit evidence before its deadline of January 6. This will be for carrying out the analysis of both the advantages and risks of the technology segment on the economy.