GameStop has warned its users that it will gradually close its upcoming NFT marketplace platform, citing regulatory uncertainties. The company’s official website states that users have just over two weeks to access the NFT platform.
The company reassured NFT owners that its decision to further reduce ties with the crypto sector will not affect their NFTs. From February 2, 2024, customers will no longer be able to buy, sell, or create NFTs on the platform. However, NFTs will continue to exist on the blockchain network and can be accessed and sold through other platforms.
GameStop attributed the scale back of crypto services to the lack of regulatory clarity. The company stated, “Due to the ongoing regulatory uncertainty in the crypto space, GameStop has decided to close our NFT marketplace.”
While many leaders in the crypto sector advocate for clearer regulatory guidance, the U.S. Securities and Exchange Commission’s decision to approve 11 spot Bitcoin exchange-traded funds indicates a move towards more regulation in the crypto space.
This step follows GameStop’s series of retreats from the crypto sector in recent years. In August 2023, GameStop advised customers to secure their “Secret Phrases” as it would stop access to iOS and Chrome Extension wallets. After reporting a net loss of $94.7 million in the third quarter of 2022 and laying off staff in the crypto assets department, GameStop announced a move away from crypto initiatives. CEO Matt Furlong stated that despite optimism about the long-term potential of crypto assets in gaming, the company has not and will not risk significant shareholder capital in this area.