The United States-based video game retail company GameStop has warned its users that it will gradually shut down its upcoming NFT marketplace platform, citing regulatory uncertainties as the reason. According to an announcement on GameStop’s official website, users have just over two weeks left to access the NFT platform.
GameStop’s Noteworthy Move
Regarding the matter, the company assured NFT owners that the decision to further reduce its ties with the crypto sector would not affect their NFTs, sharing the following statement:
“Effective from February 2, 2024, customers will no longer be able to buy, sell, or create NFTs on the platform. Your NFTs will continue to exist on the blockchain network and will remain accessible and sellable through other platforms.”
The gaming company pointed to the lack of legal regulation as the reason for further reducing its crypto services and stated in the announcement:
“GameStop has decided to close our NFT marketplace due to the ongoing regulatory uncertainty in the crypto space.”
While many leaders in the crypto sector advocate for increased regulatory clarity, the US Securities and Exchange Commission’s decision to approve 11 spot Bitcoin exchange-traded funds clearly shows that regulators are becoming more open to regulating the crypto space.
GameStop and the Crypto Space
This step comes after the gaming company has taken several steps back in the crypto sector in recent years. In August 2023, GameStop advised its customers to secure access to their “Secret Phrases” as it would be discontinuing access to iOS and Chrome Extension wallets.
In December 2022, GameStop announced it would step back from initiatives in the crypto sector after reporting a net loss of $94.7 million for the third quarter and laying off staff in its crypto assets department. GameStop CEO Matt Furlong stated that while the company remains optimistic about the long-term potential for crypto assets in the gaming world, it has not and will not risk significant shareholder capital in this area:
“Although we continue to believe in the long-term potential for crypto assets in the gaming world, we have not and will not risk meaningful shareholder equity in this space.”
