A group of MPs from the UK’s Digital, Culture, Media and Sport (DCMS) committee opened an inquiry on Friday (4) to listen to the public and discuss the benefits and risks of NFT and blockchain technologies for the country.
DCMS said in a statement that its investigation was related to the sudden growth of the NFT market and concerns that the assets may be overvalued.
According to the Parliamentarians Committee, regulation of NFTs in the UK is virtually non-existent, which is why DCMS suggests that the assets be valued before being reviewed by the Treasury.
Fear of “bursting the bubble”
The chair of the committee, Julian Knight, stated that the NFT market is now spiraling out of control, which is causing concern and forcing various regulators to understand the risks, benefits, and regulatory requirements of this technology.
DCMS investigations indicated that global sales of NFTs were about $17 billion at the end of 2021, but fell by 90% between August 2021 and March 2022, taking a huge toll on consumers.
In this way, the Commission indicated a great fear on the part of the regulators regarding the possibility of a possible bursting of the “NFTs bubble”, due to the impact that would have on the country’s finances, due to the widespread adoption of these assets.
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