The EU will start to tighten regulation of NFT tokens

The European Union will start working on an additional draft law on NFTs if lawmakers request it. This was stated by the official representative of the EU executive body Peter Kerstens.

According to Kerstens, the law on the regulation of the cryptocurrency industry (MiCA) left the interpretation of non-fungible tokens somewhat ambiguous, and the same applies to their control. To avoid problems in the future, the EU will work on a resolution on NFTs.

The MiCA rules will come into force in 2024, so the EU plans to deal with NFT regulation by then. «There is a very strange sentence in the MiCA law, according to which NFTs that are part of collections can be considered interchangeable, but this is absolutely wrong,» Kerstens emphasized.

As for MiCA, on October 11, the EU Committee on Economic and Monetary Affairs voted in favor of the new package of laws: 28 votes were in favor and only one against. The EU also supported the law on the identification of participants in cryptocurrency transactions. The law will allow to effectively track and punish criminals who use the digital asset market for money laundering.

«MiCA creates a completely new set of rules for crypto projects — those that will change the current position of cryptocurrency as an „outsider“ and make it a full-fledged participant in the EU financial services space ,» said EUCI co-founder Marina Markezic. The adopted law will be published in the Official Journal of the European Union in early 2023. As for the MiCA rules, they will come into force in 2024.