The participants of the Digital, Culture, Media and Sport Committee of the United Kingdom have started investigating to have a public opinion on the likely risks and benefits of blockchain technology and the non-fungible tokens (NFTs) on the economy of the country. In a declaration on the 4th of this month, the DCMS committee stated that its investigation was dealing with the abrupt escalation of the market of non-fungible tokens.
UK Policymakers Investigate the Requirement for NFT Regulation
This initiative has been taken to respond to the apprehensions that risk is posed to the respective digital assets that they may burst like a bubble after an abrupt growth of such an extent. As per the committee, the country’s NFT regulation is non-existent chiefly. In addition to this, the DCMS is making a strategy to evaluate the assets in advance of the review on the behalf of the treasury department.
The DCMS noted in a post on Twitter that they are delving into the likely benefits as well as the hazards posed by blockchain technology as well as the NFTs on the speculators and investors to know if there is a requirement to have regulation. Julian Knight, the chairman of the committee, stated that the non-fungible tokens have made a huge advancement across the digital world up till now and compelled the agency to examine this.
Also read:As per the chair, at present, the whole market is showing a huge turn on a vast level with an elevation occurring in the fears that this might end abruptly. The chairman added that they require comprehending the regulatory needs, the benefits, as well as the hazards related to this revolutionary technology. According to him, the focus of this investigation would be to save the clients as well as the broader markets from unstable investments.
UK Proposes MiCA Bill to Expand Stablecoin Regulation
In his words, the respective study will assist the Parliament to know about the opportunities offered by the latest technology which can democratize the selling and buying of assets. Apart from that, the authorities of the United Kingdom have stepped ahead with the Financial Services and Markets (MiCA) Bill thereof, which targets to expand the regulatory agenda of the country in the case of stablecoins. Rishi Sunak, the new Prime Minister of the UK, formerly declared support for a Royal Mint NFT’s creation.
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