Amazon is rumored to be about to introduce an NFT initiative, part of the retail giant’s larger push into Web3. The project could cause significant regulatory problems.

Amazon is rumored to be about to unveil a Web3 initiative, according to a Blockworks report. What this project will look like when it materializes remains to be seen: it could involve games, an NFT marketplace or something in between.

Either the regulatory complexity and uncertainty involved will kill the project before it even begins, or Amazon has the size and scale to “make a market” on it and bring the Web3 economy into the mainstream.

In general, large blue-chip corporations avoid Web3 because of legal uncertainty. Of course, payment companies such as Visa and Mastercard are making efforts to integrate Stablecoin into their networks, many cryptocurrencies are hosted on Amazon’s AWS cloud service, and large tech companies and TradFi companies are regular investors in the crypto economy.

But that doesn’t mean they are stakeholders in the Web3 economy, taking it from decentralized ownership. Regulatory uncertainty and lack of clarity get in the way. Amazon’s efforts have the potential to be transformational if they succeed, which would mean resolving regulatory issues.