Source: blockchain.news
A group in the UK House of Commons now plans to launch an investigation into the workings, risks and benefits of NFTs and the block chain in general, as well as to see how the industry could impart the UK economy.
Taking the first step to regulate NFTs, members of parliament or MPs will examine whether NFT investors, especially vulnerable speculators, are at risk from the market.
“NFTs swept the digital world so fast that we didn’t have time to stop and consider,” said Julian Knight, Chairman of the DCMS Committee. Julian added: “Now that the market is changing wildly and there are fears that the bubble will burst, we need to understand the risks, benefits and regulatory requirements of this innovative technology.”
In particular, the outcome of the investigation is more likely to lead to regulatory proposals to be reviewed by the Treasury.
According to the announcement, Julian Knight believes that investors, specifically the vulnerable, are at risk of being “scammed into buying NFTs” whose value may lose value at the time of purchase.
Julian said the investigation will look to see if “further regulation” might be needed to protect at-risk consumers and broader markets from “volatile investments.”
“This research will also help Parliament understand the opportunities presented by exciting new technology that could democratize the way assets are bought and sold,” Julian concluded.
Notably, this update follows a report on the UK taking further steps to become one of the most recognized crypto hubs in the world.
Last month, the House of Commons, Parliament, passed an amendment to the Financial Services and Markets Bill to regulate Bitcoin (BTC) and other cryptocurrencies as financial instruments. The bill was initially proposed when Prime Minister Rishi Sunak was the finance minister and was seeking to regulate stablecoins.
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