NFTs not taking action? – While regulators on all sides, US and European, are looking very seriously on the crypto issue, NFTs keep a low profile. The regulatory framework concerning them has not yet been established. And these digital artistic nuggets take advantage of the gray areas. Shadow that the German regulator is now trying to clear up. All the details.
NFTs, the next step in regulation?
While the final vote of the European regulations MiCA (Market in Crypto Assets) is scheduled for April, the entire sector is beginning to stress. Because this harmonized framework on a European scale will define the guidelines for regulation for the years to come. And for now, NFTs are hunkering down. Whether in MiCA or TFR, fund transfer regulations, NFT topic is currently ruled out. A good thing no doubt in an ecosystem that still only has a couple of years, hardly more, of real ” democratization “.
However, in different countries, some hiccups appear little by little. A few regulators are looking at the NFT sector. This particular innovation combining digital art, identity, property, and speculation of course, inherent in any innovation. During 2022, in China, messaging WeChat suspended accounts promoting NFT collections. Last December, in England, the Crypto.com exchange got caught by the regulator for allowing NFT ads on its platform. A month ago, Sorare managed to find an agreement with the National Gaming Authority (ANJ). This is so that Socios, its fantasy football web 3 game, is not labeled as a gambling platform.
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German regulator gives hope to crypto sector
Ultimately, the NFT land is not yet clear, sometimes undermined. And most certainly subject to interpretation depending on the country and the mood of its regulator. In this context, the German regulator seems to be in a good mood. And that is, all in all, a good sign for the future of the sector.
The Federal Financial Supervisory Authority (BaFin) in Germany has confirmed in fact, NFTs could not, at present, be considered as shares. Phew! The message is crystal clear digitally. A token representing the possession of a digital asset for speculation does not qualify as an investment instrument. According to them, the similarities with financial assets, in other words stocks, are far from obvious from a strictly regulatory point of view.
“At this time, BaFin is not aware of any NFTs that should be classified as a security in the regulatory sense. (…) However, it cannot be ruled out that NFTs will one day be classified as an action. »
For this, it would be necessary that from a regulatory point of view, the NFT correspond specifically to the behavior of a share. Which is not the case at the moment. A opinion of germany on the NFT pan which therefore seems rather reassuring.
Wanting to tick all the boxes of a existing regulations to UFOs emerging from a whole new digital universe, this is probably the error of the regulators. Barely out of the web 3 vortex, these crypto aliens, DeFi and NFT and their new uses, require specific regulations. Like MiCA for example. But a regulation which must be adapted and not abusive. In order to allow theinnovation to prosper and not deprive us of its incredible technological potential. Rather than putting these Net Martians in a cage without taking the trouble to know them, why not try to discuss them, to accept them? In order to take advantage, you never know, of the knowledge they might have to bring to us.
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