As a first step approaching the nation’s first NFT regulation, a panel inside the UK’s House of Commons initiated an inquiry into the advantages and disadvantages of non-fungible tokens.
Parliamentarians will investigate if NFT investors, particularly susceptible speculators, are put in jeopardy by the market, according to a statement from the committee in charge of the investigation, Digital, Culture, Media & Sport.
The investigation’s findings will probably lead to regulation suggestions, which the Treasury will examine.
Julian Knight, the Chair of the committee, noted that “this inquiry will also help Parliament understand the opportunities presented by an exciting new technology which could democratize how assets are bought and sold.”
When he announced the intention to issue an NFT together with the UK’s Royal Mint while serving as Chancellor of the Exchequer, Rishi Sunak, the Prime Minister, demonstrated his support for NFTs.
The committee of the parliament also noted that there is little to no NFT legislation in the UK. In order for a cryptocurrency firm to be granted a license, it must first comply with the Financial Conduct Authority’s anti-money laundering regulations.
The Financial Markets and Services Bill, which was approved by the House of Commons the week before, is one regulation that is anticipated to strengthen a more thorough framework for regulating cryptocurrency.