The regulation of digital assets is now at the center of all attention. Indeed, Americans are not the only ones wanting to establish a rigorous and clear framework for governing this market. The UK is also coming to replenish ranks. Through the DCMS (Department for Digital, Culture, Media and Sport), it intends to investigate the future and reliability of the NFT market.
UK regulations are limited to the fight against money laundering
So far, UK digital asset market regulation has been limited to anti-money laundering compliance. It requires any crypto company to register with the Financial Conduct Authority (FCA) before obtaining a license. Last week, the House of Commons also passed a bill on financial markets and services.
As for the NFT, elected officials speak of a total absence of regulation. This survey will therefore help parliamentarians better understand NFTs and develop an appropriate bill upstream.
A survey to learn about the benefits and risks of NFTs
According to the British House of Commons statement, the investigation will be conducted by the DCMS. This commission will obviously be made up of several parliamentarians. Its primary mission: to study the functioning of the NFT market. With this in mind, he will need to determine the benefits of non-fungible tokens as well as the possible risks they present in the short, medium and long term.
“MPs will need to consider whether NFT investors, especially vulnerable speculators, are put at risk by the market,” he said. A very commendable step as the price and sale of NFTs is currently on a downward trend. A 90% decline from August 2021 to March 2022, according to recent data.
A regulation that will strengthen the coordination of NFTs in the UK
The results of the investigation carried out by the DCMS will certainly lead to proposals for regulating the NFT market. A new regulation that will fill the legal void regarding NFT. But a law that will also have the mission of strengthening the coordination of NFTs in the United Kingdom.
Since new Prime Minister Rishi Sunak took office, many truly believe that NFTs and other digital assets could have a place in the UK. When he was still Chancellor, the new British Prime Minister expressed his support for the establishment of a digital currency from the British Central Bank. He was also in favor of setting up a Royal Mint NFT.
The UK parliamentary committee’s investigation is not just about the NFT market. It also includes the broader blockchain ecosystem. Some fear the results of this study, while others see this approach as an opportunity to better understand NFTs and digital assets. With a strict regulatory framework, they could actually become more accessible to as many people as possible. Towards a democratization of digital assets, one might say!
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My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years. I discovered trading and cryptocurrency just a few years ago. But it is a universe that interests me a lot. And the topics covered within the platform allow me to learn more. Singer in my spare time, I also cultivate a great passion for music and reading (and animals!