UK parliamentary report addresses NFT copyright issues. He also raises concerns about fan tokens (FAN Tokens). The Parliamentary Committee is calling on the government to ensure that consumers are protected against harm that may be caused by these altcoins.
UK Parliament: NFTs and these altcoins are causing problems!
The UK Parliament’s Culture, Media and Sport Committee argues that Non-Fungible Tokens (NFT) pose a high risk of copyright infringement. He also warns that crypto fan tokens will potentially expose fans to financial harm. Committee Chairperson Dame Caroline Dinenage made some statements about the report. Dinenage said “traditional regulatory regimes have failed to protect creators and consumers caught up in the volatile new world of crypto.” For this reason, he called for precautions for some altcoins that have the potential to cause problems.
NFTs raise copyright infringement issues
According to the report published by the Committee dated October 11, the expected advantages from NFTs did not materialize significantly. Instead, the report highlights concrete risks for both creators and consumers. It also emphasizes the existence of negative effects. The Committee expresses concern regarding the impact on existing regulatory frameworks for these altcoins. Thus, he suggests that the glory days of crypto asset sales we witnessed last year are unlikely to return.
These concerns are in line with a recent DappRadar report showing that NFT transaction volume and sales have reached their lowest levels since the first quarter of the previous year. In response, the Committee calls on the government to hold all stakeholders in the crypto asset market accountable for consumer protection. They also emphasize the need to address copyright infringement issues in this emerging industry. In this regard, Dineage says:
Artists are at risk of seeing the fruits of their hard work stolen and promoted without permission, while fraudulent and misleading advertising adds an extra layer of danger for investors involved in an already inherently risky business. The government must ensure that everyone on the crypto chain is working to properly protect consumers and creators’ rights.
Problematic altcoins according to the committee: Fan Tokens
The committee states that “the use of fan tokens in football does not count as an acceptable measure of participation in the future regulation of the game.” The report also highlights that altcoins pose a risk of causing financial harm to fans of these clubs. He even notes that it will damage the reputation of the clubs that provide them. In this context, the Committee says:
Fan Tokens do not deliver on their promise of fan engagement. It is also marketed as equivalent to other legal club memberships.
cryptokoin.comAs you follow from, fan tokens have become increasingly popular in the UK, with many premiership clubs including Manchester City (CITY), Everton (EFC), Arsenal (AFC) and others issuing tokens for their fans. Latest data shows that the total market value of the industry is $223.7 million.
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