Select Committee · Culture, Media and Sport Committee

Non-fungible tokens (NFTs) and the blockchain

Status: Closed Opened: 3 Nov 2022 Closed: 5 Feb 2024 4 recommendations 1 report

The DCMS Committee will hold an inquiry into the operation, risks, and benefits of Non-Fungible Tokens (NFTs) and the wider blockchain. MPs are expected to consider whether NFT investors, especially vulnerable speculators, are put at risk by the market. The inquiry may also look into the wider benefits that NFTs and the blockchain could provide …

Reports

1 report
Title HC No. Published Items Response
Fourteenth Report - NFTs and the Blockchain: the risks to s… HC 598 11 Oct 2023 4 Responded

Recommendations & Conclusions

4 items
1 Recommendation Fourteenth Report - NFTs and the Blockc… Rejected

Introduce a code of conduct for online marketplaces protecting creators from infringing material.

Intellectual property laws and copyright protection are central to enabling artists to create, innovate and make a living from their work. Emerging technologies that undermine these protections have a profound impact on individual artists and the UK’s world-leading creative industries more generally. We recommend that the Government engages with NFT …

Government response. The government rejects introducing a new code of conduct for online marketplaces, including NFT marketplaces, citing that previous stakeholder engagement showed it wasn't needed and there's no new evidence to change this assessment; however, it will engage with NFT marketplaces …
Department for Culture, Media and Sport
2 Recommendation Fourteenth Report - NFTs and the Blockc… Rejected

Publish analysis of Article 17 implementation and equivalent international copyright approaches by year-end.

We recommend that the Government publishes its analysis of the implementation of Article 17 of the European Union Directive on Copyright in the Digital Single Market, and equivalent approaches undertaken by countries outside the EU, by the end of the year. (Paragraph 19) Professional sport

Government response. The government rejects the recommendation to publish its analysis of Article 17 implementation by the end of the year, stating it is unable to do so as more time is required to fully assess its operation in EU member states …
Department for Culture, Media and Sport
3 Recommendation Fourteenth Report - NFTs and the Blockc… Accepted

Exclude fan tokens from all measurements of fan engagement in professional sports regulation.

The recent plateaus in professional sports leagues’ revenues and the zero-risk nature of crypto revenue for clubs has incentivised partnerships between professional sport and crypto companies. However, the unique relationship between clubs and fans means that fan speculation on sport-based cryptoassets carries a real risk of financial harm to fans …

Government response. The government accepts the recommendation, stating that the new Independent Football Regulator will explicitly exclude fan tokens from its assessment of whether a club has met the required standard for fan engagement, focusing instead on structures for consulting representative supporter …
Department for Culture, Media and Sport
4 Recommendation Fourteenth Report - NFTs and the Blockc… Accepted

Mandate the Ministerial taskforce to explicitly review misleading and fraudulent NFT and cryptoasset advertising.

We welcome the Government’s recently articulated intention to introduce statutory regulation for online advertising, in line with our conclusions and recommendations from our “Influencer culture” inquiry last year. We recommend that the Government respond to the evidence we have gathered on misleading and/or fraudulent advertising for NFTs. It should ensure …

Government response. The government welcomes the committee's point, stating that existing laws like the Consumer Protection from Unfair Trading Regulations 2008 already ban misleading advertising, and highlights its Online Advertising Programme and the FCA's expanded remit for regulating cryptoasset promotions to improve …
Department for Culture, Media and Sport

Oral evidence sessions

1 session
Date Witnesses
18 Apr 2023 Angus Scott · Artclear Ltd, Emily Gould · Institute of Art and Law, Joey D’Urso, Kieran Maguire · University of Liverpool, Reema Selhi · Design and Artists Copyright Society View ↗

Correspondence

1 letter
DateDirectionTitle
16 May 2023 To cttee Letter from Emily Gould, Assistant Director, Institute of Art and Law, relating…