GameStop to shut down NFT marketplace due to regulatory limbo

Following several reductions to its cryptocurrency offerings over the previous two years, GameStop has decided to terminate its NFT marketplace.

Due to regulatory uncertainties, gaming retailer GameStop has informed its users that it will be gradually discontinuing its nonfungible token (NFT) marketplace starting next month.

Users have little over two weeks left to utilize GameStop’s NFT platform, the company announced on its website. NFT holders will not impacted by the company’s intention to further reduce its ties with cryptocurrency, the company informed them.

“Effective as of February 2, 2024, customers will no longer be able to buy, sell or create NFTs. Your NFTs are on the blockchain and will remain accessible and saleable through other platforms.”

 The gaming corporation said that its cryptocurrency services had further declined due to a lack of regulation.

According to the statement, “GameStop has decided to wind down our NFT marketplace due to the ongoing regulatory uncertainty of the crypto space.”

The US is home to GameStop’s headquarters. The U.S. Securities and Exchange Commission’s (SEC) recent decision to approve eleven spot Bitcoin exchange-traded funds (ETFs) is seen as a sign that regulators are becoming more open to additional regulation in the space, even though many leaders in the crypto industry are calling for more regulatory clarity.

 This comes after the gaming company has reduced its cryptocurrency offerings several times in previous years. In August 2023, Cointelegraph reported that GameStop advised its customers to secure access to their “Secret PassPhrase,” since access to iOS and Chrome Extension wallets would terminated.

 After reporting a $94.7 million net loss in the third quarter and terminating employees from its digital assets division, GameStop announced in December 2022 that it would be shifting away from its concentration on cryptocurrency. Although GameStop is bullish on cryptocurrencies, CEO Matt Furlong clarified that he didn’t want to jeopardize investor money.

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