NFT: the European Parliament is considering future regulations

NFTs have so far escaped the rules of the MiCa law, but the European Parliament is already 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 cryptocurrency market, but their influence is still large enough to scare the authorities. While the French government has announced that it is interested in non-fungible tokens and intends to invest in them, the European Parliament sees small digital images in a completely different way.

The MiCa law, which was supposed to regulate the vast majority of the cryptocurrency industry, stands out even before its implementation in many gray areas. Indeed, the text has failed to extend to certain spheres of the industry such as sports betting or even NFT. However, they find more and more use cases that push the European Union to crack down. A new regulation would therefore be in preparation soon.

Before starting major discussions, the European Parliament is waiting for a report that sheds light on the state of the art of non-fungible tokens, their use and the influence they have on cryptocurrencies. The document cannot fail to address the various security and theft issues occurring in its market. Be that as it may, this should allow the European Commission to grant a personalized status to NFTs and draft a regulation accordingly. According to the 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 was the result of a certain fear of cryptocurrencies, the next NFT framework should serve to stem fraud and protect consumers, but it could also benefit the industry. In fact, Eva Kaili has already distinguished herself as a defender of the blockchain. Despite everything, the next regulation could still be based on European laws and provide for some monitoring.

France also wants to crack down on fraud

In France, NFTs may also be subject to certain laws. Digital Transition Minister Jean-Noël Barrot recently indicated that public money could be re-injected 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 BAYC. Thus, for example, we could see the latter replace tickets at public events, a proposal that was formulated in view of the future 2024 Olympic Games.

The French government’s interest in this cryptocurrency industry is not without regulation. Indeed, Jean-Noël Barrot seems to be working hard for the growing cybercrime, a phenomenon that cryptocurrencies but also NFTs know very well. The latter could therefore be given a framework in line with upcoming initiatives to fight cybersecurity, with the aim of limiting the abuses suffered by investors in non-fungible tokens.

We are seeing a sharp rise and transformation of crime in cyberspace. However, this situation plunges our fellow citizens into a form of digital insecurity and undermines trust in technologies that nevertheless bring promise and progress.

Excerpt from Jean-Noël Barrot’s comments on cybercrime in France

Source: Jean-Noël Barrot’s Twitter account

Through the implementation of a possible regulation, the French government hopes that the population will be better able to turn to new technologies, including blockchain, and that sectors such as cryptocurrencies can develop more effectively.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at your own risk.

Leave a Comment