A report suggests that the capacity of MiCA, the EU’s regulatory framework for digital assets, could be broader and include policies aimed at NFTs.
A new regulatory framework for digital assets from the European Union could request issuers of non-fungible tokens (NFTs) to register with regulators.
According to a report revealed by CoinDesk, lawmakers in France submitted a file highlighting the proposal that would impose more robust measures on the burgeoning NFT environment. The document, which got reviewed by that news agency, is part of ongoing discussions on MiCA, the EU’s broad legislative package to set regulations on digital assets.
According to the file, “an NFT issuer has to be a legal individual rather than an under entity decentralization and have to register with the authorities following other consumer protection procedures set up in the law.
According to the report, the document got updated but got prepared ahead of a closed-door meeting on Friday morning European time. CoinDesk also determined that it got ready by France, whose government is in charge of chairing talks within the EU council around MiCA.
The Real Context Around MiCA
The European Union works hard on a comprehensive regulatory framework for digital assets. The Regulation of Markets in Crypto assets, called MiCA, got initially presented in 2020 as part of the European Commission’s Digital Finance set.
The file spent much of last 2021 under a study led by the European Council, the European Central Bank, and the European Protection Supervisor. Debates for final approval would take effect this year.
The presentation relies on various struggles connected to digital currencies, including a categorization of digital currencies and stable coins. It also sets policies for digital asset issuers and service providers.
One of the axes of the project will be to unify cryptocurrency regulations among member countries. MiCA will offer “universal” licenses to cryptocurrency platforms that will allow them to operate within the European Economic sector, even if they do not comply with each country’s specific standards of each legal system. According to some general guidelines, EU countries have to issue their regulatory requirements for crypto-assets.
The news outlet also expressed that lawmakers seem to receive backup from the European Commission, which negotiated the remaining talks for MiCA approval. It has also raised concerns about the integrity of the NFT environment as it relates to the latest proliferation of frauds.
According to the report, EU legislators and governments are not only talking about stronger regulations for NFTs. Other problems directly linked to the digital currency space, such as decentralized autonomous organizations (DAOs), Web3, and possible limitations for crypto mining, are also included among the subjects to get discussed.
A controversial provision that would limit the use of PoW-based digital assets such as Bitcoin due to their environmental impact was recently under debate within the EU Parliament. After many votes, most legislators rejected the provision, and a draft MiCA without such a prohibition moved forward in discussions.
By: Jenson Nuñez
