A bipartisan parliamentary committee has urged the UK government to protect creators from copyright infringement related to non-fungible tokens (NFTs) and address the potential harm of digital assets issued by sports groups.
In the news on October 11 releaseMembers of the Culture, Media and Sport Committee warned that the “most pressing issue” was the risk that the ease and speed of minting NFTs poses to artists’ intellectual property rights, compared with the slow process of artists seeking to exercise their rights.
Committee chairwoman Caroline Dinenage said: “Artists are at risk of the results of their hard work being fabricated and promoted without their permission through fraudulent and misleading advertising. Investors participating in an already risky industry add an extra layer of danger.”
In the accompanying report, the committee respected The government is working with NFT markets to address these infringements by introducing codes of conduct to protect creators, consumers and sellers from infringing and potentially fraudulent material sold on such platforms.
The committee also warned of the potential harm of sports leagues or teams creating cryptocurrencies to offer to fans and called for a ban on such digital assets.
Previously, a number of English football organizations, including Manchester City and Tottenham Hotspur, issued “fan tokens” to followers and club members. Purchasing such tokens is supposed to provide exclusive rights and benefits, but the Commission claims that this is often not the case.
Passion knows no boundaries.
From North London to South Korea. COYS is present all over the world. @Tottenham official join in family #热stimulus pic.twitter.com/Rjns7z6RYy
— Socios.com (@socios) September 28, 2023
“We are also concerned that clubs may adopt fan tokens as an appropriate form of fan engagement in the future, despite their price volatility and fan base reservations,” the report said.
related: Barcelona FC secures $132 million in investment for blockchain and NFT ventures
The committee claimed that the volatility of these tokens could cause financial harm to fans because they were unaware of the “inherently risky” nature of the asset.
“Across the sports world, clubs are promoting volatile crypto-asset schemes to extract additional funds from loyal supporters, often promising perks and benefits that cannot be delivered.”
The committee concluded that “any measure of fan participation in sport, including forthcoming football regulations, should explicitly exclude the use of fan tokens.”
Magazine: Web3 Gamer: Minecraft bans Bitcoin P2E, iPhone 15 and crypto games, Formula E
Svlook
