The Digital, Culture, Media and Sport Committee (DCMS) of the UK Parliament published a call for evidence on the operation, risks, and benefits of non-fungible tokens (NFTs) and blockchain. The DCMS noted that digital assets such as NFTs provide for flexible ownership, making them attractive for wide adoption. But with limited NFT regulation in the United Kingdom, the DCMS is considering how investors may be exposed.

On November 4, 2022, the DCMS called for evidence on the following:

• Whether the United Kingdom’s light-touch NFT regulation is sufficient
• What potential harms NFT speculation could cause to vulnerable people
• Whether blockchains offer security to British investors
• What potential benefits individuals and society might derive from NFT speculation

The DCMS hopes that the inquiry will help Parliament understand the opportunities that NFTs and blockchain present, given their potential to democratize how assets are bought and sold. The inquiry may also help determine whether more regulation is needed, as NFT regulation in the United Kingdom is largely nonexistent.

DCMS Chair Julian Knight MP said, “NFTs swept through the digital world so fast that we had no time to stop and consider. Now that the market is veering wildly, and there are fears that the bubble may burst, we need to understand the risks, benefits, and regulatory requirements of this groundbreaking technology.”

The invite for the inquiry closes on January 6, 2023.