DCMS will hold an inquiry into the operation, risks, and benefits of 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 the UK economy.

NFT regulation in the UK is largely non-existent. The inquiry into NFTs and the Blockchain is likely to examine whether more regulation is needed, ahead of a Treasury review.

Chair of the DCMS Committee, Julian Knight MP, said: “NFTs swept through the digital world so fast that we had no time to stop and consider. 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. "