The regulation of digital assets is now at the center of all attention. In fact, it is not only the Americans who want to establish a strict and clear framework to manage this market. The United Kingdom is also coming to fill the ranks. Through the DCMS (Department for Digital, Culture, Media and Sport), he intends to investigate the future and reliability of the NFT market.
British regulations are limited to the fight against money laundering
Currently, regulation of the digital asset market in the UK is limited to anti-money laundering compliance. It requires any crypto company to register with the FCA (Financial Conduct Authority) before obtaining a license. Last week, the House of Commons also passed the Financial Markets and Services Bill.
Regarding the NFT, elected officials spoke of a complete absence of regulation. This survey will help the parliamentarians to better understand the NFTs and to make an appropriate bill on it.
A survey to identify the benefits and risks of NFTs
According to a statement by the UK House of Commons, the investigation will be conducted by the DCMS. This committee is obviously made up of many MPs. Its main mission: to study the movement of the NFT market. With this in mind, he should know the advantages of non-fungible tokens as well as the possible risks they present in the short, medium and long term.
“MPs should consider whether NFT investors, especially vulnerable speculators, are being put at risk in the market,” it said. A very commendable move because the price and sales of NFTs are currently experiencing a downtrend. A 90% reduction from August 2021 to March 2022, according to new data.
A regulation that will strengthen the coordination of NFTs in the United Kingdom
The results of the investigation conducted by the DCMS will certainly lead to proposals for regulating the NFT market. A new regulation will fill the legal void regarding NFTs. But a law that also has a mission to strengthen the coordination of NFTs in the United Kingdom.
Since the new Prime Minister Rishi Sunak took office, many believe that NFTs and other digital assets may have a place in the UK. When he was Chancellor, the new British Prime Minister expressed his support for the establishment of a British Central Bank digital currency. He is also in favor of creating an NFT Royal Mint.
The investigation by the British parliamentary committee is not only about the NFT market. It also includes the broader blockchain ecosystem. Some fear the results of such a study, while others see this approach as an opportunity to better understand NFTs and digital assets. With a strict regulatory framework, they can be made 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 now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that really interests me. And the topics covered within the platform allowed me to learn more. A singer in my spare time, I have also developed a great passion for music and reading (and animals)!