GameStop, a popular gaming retailer, has announced that it will discontinue its non-functioning token (NFT) platform next month due to regulatory uncertainty. GameStop informed users that they have just over two weeks left to use its NFT platform. However, the company assured NFT holders that the decision will not affect their NFTs, which will remain available and tradable through other platforms.

GameStop cited lack of regulation as the reason for the reduction in cryptocurrency initiatives, citing “ongoing regulatory uncertainty in the cryptocurrency space.” “The company is headquartered in the U.S., where the regulatory environment for cryptocurrencies remains uncertain.

Despite recent positive developments, such as the SEC’s approval of spot bitcoin ETFs, GameStop’s decision reflects the challenges faced by companies operating in the cryptocurrency space. The move follows a series of cuts to cryptocurrency offerings from GameStop in recent years. In August 2023, the company advised its customers to secure access to its “secret phrase” by discontinuing access to its iOS and Chrome Extension wallets.

In December 2022, GameStop said it was going to divest from cryptocurrencies after the company posted a significant net loss in the third quarter and laid off employees from its digital assets division.