Members of the U.K. parliament have started an inquiry into non-fungible tokens Friday as the regulation of those blockchain-based collectibles are "largely non-existent" in the country, according to a statement. Specifically, the Digital, Culture, Media and Sport committee in the House of Commons launched the initiative into the operation, risks, and benefits of NFTs and their underlying blockchains. The deadline for the inquiry is January 6, 2023. NFTs, or digital representations of real world items that can be traded, gained popularity throughout last year, garnering global sales that topped $17B by the end of 2021, the statement read. But that emergence quickly fell off a cliff as weekly sales cratered 90% from August 2021 to March 2022, coinciding with a broader downturn in cryptocurrencies.Last year's growth "sparked fears that NFT speculation may be a bubble, and that overvalued assets may be dumped on 'greater fool' investors," parliament members noted. "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," said Chair of the DCMS Committee, Julian Knight, MP.Related ETF: Defiance Digital Revolution (NFTZ). In July, the U.K. Treasury opened an inquiry into the use of cryptos.
