GameStop Closes Its NFT Market Due To Regulatory Uncertainty

GameStop, gradually stopping the non-fungible token market (NFT) (photo: dock.pexs)

GameStop, a video gamer, has warned its users that it will gradually stop their non-fungible token market (NFT) next month due to regulatory uncertainty.

In a statement on the GameStop website, the company notified users that it only had more than two weeks to access their NFT platform. However, the company guarantees NFT holders that the decision to further reduce their engagement with crypto will have no impact on their NFT.

"Starting February 2, 2024, customers will no longer be able to buy, sell or make NFTs. Your NFT is on the blockchain and will remain accessible and sold through other platforms." The gaming company pointed to a lack of regulation as the cause of its crypto service decline.

"GameStop has decided to stop our NFT market due to the continuing regulatory uncertainty in the crypto space," the statement noted.

GameStop is centered in the United States. Although many leaders in the crypto industry are pushing for increased regulatory clarity, the recent decision by the United States Securities and Exchange Commission (SEC) to approve 11 direct Bitcoin exchange funds (ETF) is considered a positive indication that regulators are increasingly accepting to be more organized in this space.

This comes after a series of crypto offerings from gaming companies in recent years.

In August 2023, Cointelegraph reported that GameStop recommends its customers to secure access to their "Secret PassPhrase", as it will halt access to iOS and Chrome Extension wallets.

In December 2022, GameStop indicated that it would stay away from its focus on crypto after recording a net loss of 94.7 million US dollars in the third quarter and cutting off employment from its digital asset department.

GameStop CEO Matt Furlong explained that although the company is optimistic about crypto, he wants to avoid putting investors' funds at risk.

"While we continue to believe there is long-term potential for digital assets in the gaming world, we are not and will not risk significant shareholder capital in this space."