The EU plans to stricterly regulate the use of NFT tokens, on a par with cryptocurrencies

Lawyer Brian Fyre spoke in more detail about the EU’s plans to regulate the use of NFTs — in the European Union, non-fungible tokens are likely to be recognized as securities.

According to Fyre, NFTs sold as part of large collections such as BAYC do not have any unique qualities, are not useful, and cannot be regarded as works of digital art. It is for these reasons that the MISA law will prescribe the same regulatory control for NFTs as for cryptocurrencies.

So far, lawmakers have neither confirmed nor denied this information. However, it is known for certain that the provisions of the MiSA will apply to digital assets — the new law will take into account the environmental impact of cryptocurrencies based on the PoW (Proof-of-work) algorithm. The MiSA will not include control over DeFi (decentralized financial systems). In 2023, the European Commission plans to publish a separate report on this issue and launch a pilot project for DeFi supervision.

As a reminder, the European Parliament is actively working on a regulatory policy on the use of cryptocurrencies. Thus, in early July, it became known that the Digital Services Act (DSA) and the Digital Markets Act (DMA) had been adopted. According to the European Commission, the new laws apply to the largest cryptocurrency platforms operating in the EU. For violation of the rules, crypto companies face fines of up to 10% of their total cash turnover for the year and up to 20% in case of repeated violations.