Sorare, the Ethereum-powered NFT platform with a fantasy football twist, is being investigated by UK regulators.
The Gambling Commission said it is carrying out enquiries into the Paris-based company.
It has not given a licence to Sorare, though its website is already being targeted at the British market, among others.
“This means that any activity completed on the site by consumers in Great Britain is outside of the gambling regulations that a licensed operator should comply with.
“Consumers are being advised to consider this information when deciding whether or not to interact with the site,” the Commission said in a statement.
The watchdog said its investigation will determine whether Sorare requires an operating licence or whether the services it provides do not constitute gambling.
In response, Sorare said in a statement: "When a product with a nascent technology becomes successful, such as Sorare’s digital collectable cards and game, it is normal and expected to be regulatory questions.
"We are very confident Sorare does not offer any forms of regulated gambling. This has been confirmed by expert legal opinions at every stage since the company was founded, including during a number of fundraising rounds. We will always engage and have an open dialogue with authorities who reach out to us to learn more about our game. We believe this is the responsible way to grow our game and community globally."
Footballers Rio Ferdinand, Antione Griezmann, and Gerard Pique are all investors in Sorare which last month raised US$680mln as it seeks a rights deal with the Premier League to add to an existing deal with La Liga in Spain, and individual agreements with football clubs including Liverpool, Paris Saint-Germain, Bayern Munich, Boca Juniors, Inter Milan and AC Milan.
Ferdinand and Griezmann earlier this year were said to have participated in a US$50mln Series A funding round.
In what is marketed as a free game, Sorare users can pick player cards, which are NFTs of varying rarity, and can assemble teams to compete in ‘five-a-side’ fantasy sports tournaments to win prizes, include more valuable NFTs.