GameStop to close NFT marketplace due to regulatory limbo

Gaming retailer GameStop has warned that it will suspend its NFT marketplace next month due to regulatory concerns.

In a statement on GameStop's website, it informed consumers that it will be more than two weeks before NFT hits the platform. However, the company has assured NFT holders that its decision to further reduce its exposure to crypto will not affect NFTs.

As of February 2, 2024, clients will no longer be able to buy, sell, or create NFTs. Your NFTs are on the blockchain and will be accessible and tradable on other platforms.

The gaming company cited a lack of regulation as the reason for the further decline of crypto services.

“Due to ongoing regulatory uncertainty in the crypto space, GameStop has decided to eliminate our NFT marketplace,” the statement said.

However, GameStop is headquartered in the United States. While many leaders in the crypto industry advocate for increased regulatory transparency, the recent decision by the US Securities and Exchange Commission (SEC) to approve 11 spot Bitcoin exchange-traded funds (ETFs) is seen as a positive sign that regulators are becoming more proactive. Accepting more regulation in space.

Today's spot Bitcoin ETF approvals are a historic milestone for the future of the digital asset ecosystem.

While action remains necessary to provide transparency and certainty for digital assets, today's measures are a significant improvement on the mandatory regulation. https://t.co/RC0OLHB1zQ

— Patrick McHenry (@PatrickMcHenry) January 10, 2024

Related: NFTs eye return following spot Bitcoin ETF approval

This comes after a reduction in crypto offerings from the gaming firm in recent years.

In August 2023, Cointelegraph reported that GameStop would end access to iOS and Chrome Extension wallets and advised its customers to keep a secret passphrase.

A year ago, in December 2022, GameStop announced it would exit its focus on crypto after posting a third-quarter net loss of $94.7 million and laying off employees from its digital assets department.

GameStop CEO Matt Furlong explained that despite the company's optimism for crypto, it wanted to avoid putting investors' money at risk.

Although we continue to believe there is long-term potential for digital assets in the gaming world, we do not have and will not invest meaningful shareholder capital in this space.

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