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A cross-party committee of the UK Parliament has called on the government to protect the rights of artists and consumers in the nft market.
Committee members also raised concerns about fan tokens in sports, which are a type of digital token that gives fans special access and rewards from their favorite teams. The committee of deputies from different political parties published a 500-page report report on October 10 after analyzing how blockchain and nft affect art and culture.
The report praised NFTs for creating new opportunities for artists, such as reaching new audiences, fostering creativity, and demonstrating ownership and originality.
However, the report also pointed out the serious problems and dangers that NFTs create for both manufacturers and buyers, such as intellectual property theft, cheating, environmental damage, and law breaking.
Committee members called on the government to work with nft platforms to stop the common problem of copying original works without consulting the creators or owners. The committee said the current law should be better at handling large, complicated copying cases and that it is too complex and expensive for artists to take action themselves.
The government body suggested that the government draw up a code of conduct for online platforms in the UK, including nft platforms, to ensure they respect the rights of creators and stop selling copied and fake material.
The group also warned about the growing number of fan tokens in sport, which are given out by clubs or leagues to offer fans different benefits, such as voting rights, discounts or exclusive content. The committee said fan tokens are dangerous for fans who invest in them, who can lose money due to price changes or dishonest behavior, and for clubs, who can damage their reputation or face legal problems.
Committee leader Dame Caroline Dinenage MP said the government must ensure that everyone in the cryptocurrency world is working to properly protect the rights of buyers and manufacturers. She noted that traditional rules still need to keep up with the new, fast-changing crypto world and that quick action is needed to address gaps and risks in this new area.
