The U.K. Gambling Commission (UKGC) has issued a warning and notice about fantasy football NFT platform SoRare.com. However, the gambling regulator did not take enforcement action against the platform but warned players that its activities fall outside the country’s scope of regulated gambling activity. It also said it was “carrying out inquiries” into the company to determine whether or not it required an operating license and whether or not its activities constitute gambling.
NFTs have been one of the hot trends in the crypto community this year.
NFTs have been one of the hot trends in the cryptocurrency and blockchain industry this year, and along with DeFi, millions of speculators have flooded into the space in the hope of making quick gains. To meet this demand, platforms that list NFTs have sprung up on almost all major blockchains. SoRare.com is an Ethereum-based NFT platform that facilitates the trade of NFT player cards from more than 120 football clubs. This is no fly-by-night operation, either, as earlier this year, it raised more than $680 million in a funding round led by SoftBank.
Regulators continue to crack down on platforms like SoRare.
This year, there have been severe reports on regulatory crackdowns on virtually every facet of the digital currency industry, from NFT platforms to Coinbase Lend to BTC and Tether. Despite the backing of major financial players, regulators are cracking down on platforms like SoRare.com and others. Once again, we see evidence in this latest notice by the UKGC that no matter how big the financial backers, and no matter how hot the trend, regulators are waking up and, at the very least, asking increasingly pointed questions about what’s legal and what’s not in this space.