NFT: European Parliament evaluates future regulations

NFTs have so far escaped the provisions 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 did when they first hit 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 a large majority of the cryptocurrency sector, stands out even before its implementation from many gray areas. Indeed, the text failed to extend to certain areas of the industry such as sports betting or even NFTs. 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 embarking on major discussions, the European Parliament is awaiting a report that should shed light on the state of the art of non-fungible tokens, their use and the influence they have in crypto. The paper 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 Eva Kaili, MP and promoter of the project, 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 scare over cryptocurrencies, the upcoming NFT framework is expected to help curb fraud and protect consumers, but could also benefit the industry. In fact, Eva Kaili has already stood out as an advocate for 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 reinjected into non-fungible tokens. This implies, contrary to some popular beliefs, that the funds will be invested in digital imaging technology and not speculative collections like BAYC. Thus, for example, we could see the latter replace tickets at public events, a proposal that has been formulated in view of the future Olympic Games of 2024.

The French government’s interest in this cryptocurrency sector is not without regulation. Jean-Noël Barrot, in fact, seems to be working hard on the growth of cybercrime, a phenomenon that cryptocurrencies but also NFTs know very well. The latter could therefore be given a framework in line with the upcoming initiatives to 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 trust in technologies that nonetheless bring promise and progress with them.

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

Source: Jean-Noël Barrot’s Twitter account

Through the implementation of any regulation, the French government hopes that the population can turn more to new technologies, including the blockchain, and that sectors such as cryptocurrencies can develop more effectively.

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