GameStop, the gaming retailer, has informed its users that it will be phasing out its non-fungible token (NFT) marketplace next month due to regulatory uncertainties. In a statement posted on GameStop’s website, users were given just over two weeks to access the NFT platform. However, the company assured NFT holders that the decision to reduce its involvement with cryptocurrency further would not impact their NFTs. Citing the lack of regulation as the reason for diminishing its crypto services, GameStop explained that the ongoing regulatory uncertainty in the crypto space led to the decision to wind down its NFT marketplace. It’s worth noting that GameStop is based in the United States, and despite calls for increased regulatory clarity in the crypto industry, the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is viewed as a positive signal that regulators are becoming more open to additional regulations in the space.
This decision follows a series of cutbacks in cryptocurrency offerings by the gaming company over the past few years. In August 2023, Cointelegraph reported that GameStop advised its customers to ensure access to their Secret PassPhrase, as it planned to discontinue support for iOS and Chrome Extension wallets.
In December 2022, the year before, GameStop signaled a shift in its priorities away from cryptocurrency. This decision followed the company’s experience of $94.7 million in net losses in the third quarter and staff layoffs in its digital assets department. GameStop CEO Matt Furlong clarified that, although the company maintains optimism about crypto, the intention was to steer clear of jeopardizing investor funds.
