British MPs from a bipartisan parliamentary committee have called on the UK government to take action to protect creators from copyright infringement associated with nonfungible tokens (NFTs) and to address potential issues related to sporting groups issuing digital assets.

The committee expressed concerns that the ease and speed at which NFTs can be created poses a significant risk to artists’ intellectual property rights. They pointed out that artists can see the products of their hard work stolen and promoted without their permission, while fraudulent and misleading advertisements further complicate matters for investors in an already inherently risky industry.

The committee recommended that the government collaborate with NFT marketplaces to introduce a code of conduct that safeguards creators, consumers, and sellers from infringing and potentially fraudulent material on these platforms.

Furthermore, the committee raised concerns about sporting leagues or teams creating cryptocurrencies for fans. It highlighted that many fan tokens did not deliver the exclusive rights and benefits they promised. The committee warned that the volatility of these tokens could financially harm fans who were unaware of the risks involved.

In conclusion, the committee suggested that any measurement of fan engagement in sports, including in forthcoming football regulations, should explicitly exclude the use of fan tokens.