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The Digital, Culture, Media and Sport Committee’s Inquiry Into Blockchain And NFTs

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The Digital, Culture, Media and Sport Committee (DCMS), entrusted with the examination of government policy, spending and administration on behalf of the electorate and the House of Commons, has reported starting an inquiry into the operational risks and benefits of NFTs as well as the wider blockchain.

The Chair of the DCMS Committee, Julian Knight MP, stated that there is a need to understand the “risks, benefits, and regulatory requirements of this groundbreaking technology.

Investors, especially vulnerable ones, are at risk of being swindled into buying NFTs whose value may tank on the moment of purchase. Our inquiry will investigate whether greater regulation is needed to protect these consumers and wider markets from volatile investments.  

This inquiry will also help Parliament understand the opportunities presented by an exciting new technology which could democratise how assets are bought and sold.” 

Members of the Parliament are to review the NFT market based on evidence provided by anyone as reply to the questions in the call for evidence submitted by 6 January 2023.

The questions to be answered are:

  1. Is the UK’s light-touch NFT regulation sufficient? 
  2. What are the potential harms to vulnerable people of NFT speculation? 
  3. Do blockchains offer security to British investors? 
  4. What are the potential benefits to individuals and society of NFT speculation?