The NFT have so far escaped the regulations of the MiCa law, but the European Parliament is already in the process of correcting the situation.
The European Union prepares its framework for NFTs
NFTs may no longer enjoy the success they had when they first arrived in the crypto market, but their influence is still great enough to scare the authorities. While the French government has announced that it is interested in non-fungible tokens and that it intends invest in itthe European Parliament sees small digital images in a completely different way.
The MiCa law, which was supposed to regulate a large majority of the crypto sector, stands out even before its implementation by many gray areas. Indeed, the text omitted to extend to certain spheres of the industry such as sports betting or even NFT. However, they find more and more use cases pushing the European Union to crack down. A new regulation would therefore be soon in preparation.
Before embarking on major discussions, the European Parliament is awaiting a report which should shed light on the state of the art of non-fungible tokens, on their use and on the influence they have in crypto. The document may not fail to address the various security issues and flights taking place in its market. Be that as it may, this should enable the European Commission to grant a personalized status to NFTs and to draw up a regulation accordingly. According to MP and instigator of the project Eva Kaili, the latter should rather be based on the activity around the digital images rather than on the object itself.
However, unlike the MiCa law which resulted from a certain fear of crypto, the next framework for NFTs should serve to stem fraud and to protect consumers but could also position itself in favor of the industry. Indeed, Eva Kaili has already distinguished herself as a defender of the blockchain. Despite everything, the next regulation could nevertheless be based on European laws and involve a certain monitoring.
France also wants to crack down on fraud
In France, NFTs could also become subject to certain laws. Digital Transition Minister Jean-Noël Barrot recently indicated that public money could be reinjected into non-fungible tokens. This implies, contrary to some popular belief, that the funds will be invested in digital image technology and not in speculative collections such as the BAYC. Thus, we could for example see these replace tickets during public events, a proposal that was formulated in view of the future Olympic Games 2024.
The French government’s interest in this crypto sector is not without some regulation. Indeed, Jean-Noël Barrot seems to be working hard on growing cybercrime, a phenomenon that cryptocurrencies but also NFTs know very well. The latter could therefore be given a framework in line with the next initiatives fight in favor of cybersecurity, with the aim of limiting the abuses suffered by investors in non-fungible tokens.
We are witnessing a sharp increase and transformation of crime in cyberspace. However, this situation plunges our fellow citizens into a form of digital insecurity, and undermines confidence in technologies that nevertheless carry promise and progress.
Extract from about by Jean-Noël Barrot concerning cybercrime in France
Through the implementation of a possible regulation, the French government hopes that the population will be more able to turn to new technologies, including blockchain, and that sectors such as crypto can develop more effectively.
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NFT: the European Parliament is considering future regulations – BeinCrypto International
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