Some UK ministers of parliament are calling for greater protection of citizens as a perceived “crypto craze” is encouraging people with little knowledge of investing to enter this new sector.
Vulnerable young people are especially in danger according to an article on inews, and the particular dangers that raise most concern are those of cryptocurrencies and NFTs.
Some niches within the cryptocurrency sector are singled out as areas where vulnerable people can lose their money. Fan tokens are one such area. The cryptocurrency Chiliz (CHZ) and all the associated separate tokens belonging to each club are being seen as “speculative investments” and linked to “gambling”.
The crypto company in question would probably argue that the fan tokens are a means for fans to engage with their club, influence decisions, and earn rewards. However, the counter-argument may be that it is pure speculation and that the tokens can lose a lot of value.
NFT artworks are another area being looked at. Some might say that these are glorified “jpegs”, and if you buy one you can be stuck with nobody to sell it to. Judging by what is happening in this space, there is probably some truth to this accusation.
However, art is an extremely subjective area, and one man’s NFT is the next Andy Warhol, while another man’s NFT is just a jpeg to be flipped as soon as possible. Whoever owns it when the music stops is pretty much stuck with a worthless item.
MPs and others are calling for the UK government to take the bull by the horns and not only fully investigate the crypto sector, but bring in some much needed regulation.
Read more here: cryptodaily.co.uk