News hardware NFT: The European Parliament wants to regulate them, but not to look nice
The emerging NFT sector still remains a mystery to most institutions, including the European Parliament. For this reason, after intervening on cryptocurrencies with the MiCa bill, the political body could soon legislate on the nature of virtual ownership certificates (NFTs).
The European Parliament wants to regulate NFTs
If NFTs seemed to be spared by the MiCa (Market in crypto asset) bill aimed at regulating the crypto sector, the European Parliament intends to deal with non-fungible tokens. The political body is expected to write a report on NFTs in Europe soon. This text aimed at determining the nature of these tokens will be sent to the European Commission in 2023.
NFTs “deserve a personalized diet,” MEP Eva Kaili said at a conference in Brussels on Wednesday, The Block reports.
Through this report, the goal is to establish a specific regime for this new technology. Financial asset, work of art or valid property right, many questions will be raised as to whether or not to apply taxes on NFTs.
Have NFTs grown too fast?
With the explosion of NFT into digital art in 2021, this young industry has been in the spotlight overnight. With the craze, the volumes of money invested have increased dramatically, allowing many investors to record huge profits during the speculative bubble.
Owners of the most popular NFT collections such as Bored Ape or even Cryptopunks have been able to spend from a few hundred euros to several hundred thousand euros. Most of them had to pay taxes to benefit from their capital gains. This “flat fee” of 30% is for cryptocurrencies and not directly for NFTs.
“Decentralized finance (DeFi) has remained outside the scope of European regulation, as have NFTs. I think we are at the level where we can get close to that,” explains Eva Kaili.
Therefore, while the field is gradually dying out due to the fall of bitcoin and other cryptocurrencies, several political figures are considering providing a specific framework for this new technology.
NFT technology benefits from a favorable environment
Regulating doesn’t necessarily mean limiting technology. Indeed, despite the industry having been experiencing its worst month in terms of trading volume since the beginning of the year, some politicians have recently spoken favorably about NFTs.
This is the case of the French Minister of Economy, Bruno le Maire, who declared that he wanted to “position France as the leader” of the web3 (crypto, NFT and metaverse included). Adding that we shouldn’t be “afraid of innovation” and try not to “choke the crypto ecosystem” with regulation.
Even more committed, the Delegate Minister for Digital Affairs, Jean-Noël Barot, wants to finance NFTs with public money: “Supporting this movement is the responsibility of the public authorities… with the support of public money. “
With these interventions, the government’s guideline seems to have been fixed as Europe tends to regulate the NFT sector.