UK government to examine pros and cons of blockchain technology and NFTs

The UK government’s Department for Digital, Culture, Media & Sport is accepting evidence for its inquiry into the “operation, risks, and benefits of non-fungible tokens (NFTs) and the wider blockchain”.

MPs on the committee are expected to consider whether NFT investors – particularly vulnerable speculators – are put at risk by the market.

The inquiry, which is welcoming anyone to submit evidence before Friday January 6, is also expected to look at the wider benefits of NFTs and blockchain technology to the UK economy. It is also likely to examine whether more regulation of the industry is required, ahead of an upcoming Treasury review.

“NFTs swept through the digital world so fast that we had no time to stop and consider,” said Julian Knight MP, chairman of the DCMS committee.

“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 ground-breaking technology. 

“Investors, especially vulnerable ones, are at risk of being swindled into buying NFTs whose value may tank on the moment of purchase. Our inquiry will investigate whether greater regulation is needed to protect these consumers and wider markets from volatile investments.  

“This inquiry will also help Parliament understand the opportunities presented by an exciting new technology which could democratise how assets are bought and sold.” 

Evidence can be submitted here… Non-fungible tokens (NFTs) and the blockchain – Committees – UK Parliament