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Gungun Bhatia
Nov 5, 2022
by Gungun Bhatia

UK Legislators to Conduct Investigation to Examine NFT Regulation

UK NFT Regulation

Table of contents

  1. NFT Examination by DCMS
  2. NFTs to Create “Bubble”
Legislators in the United Kingdom want to know the public's opinion about controlling non-fungible tokens (NFT), which they believe are frequently overpriced. The study filings by the UK legislators will probably lead to NFT regulation suggestions, which the Treasury will evaluate. According to the press release, committee head Julian Knight remarked that this investigation would also assist Parliament to comprehend the prospects afforded by an innovative new technology that might democratize how assets are acquired and traded.

NFT Examination by DCMS

On Thursday, the Digital, Culture, Media and Sport Committee (DCMS), composed of representatives from several political parties, announced the commencement of an investigation. The examination involves the workings, dangers, and advantages of NFTs, which are blockchain-based digital assets that reflect ownership of either virtual or actual objects.

Celebrity endorsements of NFTs have gained attention, and the development of the virtual marketplace known as the metaverse, which enables users to purchase and exchange these tokens, has further increased their value. According to a release, global NFT revenues surpassed $17 milliards by the closing of March 2021. However, weekly NFT sales have now decreased by over 90% from August 2021 to March 2022.

NFTs to Create “Bubble”

Parliamentarians in the UK are now concerned that NFT investment may create a "bubble." Since the economy is erratic and there are concerns that the bubble could collapse, Julian Knight, MP, head of the DCMS Committee, stated in the announcement that they needed to comprehend the dangers, advantages, and legal needs of this new technology.

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non-fungible tokens (NFT) bubble UK Government Digital Culture Media and Sport Committee (DCMS)
UK Legislators to Conduct Investigation to Examine NFT Regulation
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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