Malta expected to review regulatory framework around NFTs | The Financial Express

Malta expected to review regulatory framework around NFTs

According to Cointelegraph, NFTs have received the inclusion of Virtual Financial Services Act, which also includes virtual tokens, virtual financial assets, electronic money

Malta expected to review regulatory framework around NFTs
Going by Selfie.Live’s official website, it’s a mobile application that enables fans to take photos with celebrities and receive a digital autograph as an NFT

Malta Financial Services Authority (FSA) is in the process of reviewing requests to revise the “regulatory treatment” of non-fungible tokens (NFTs) within its virtual financial assets framework, as reported by Cointelegraph.

According to Cointelegraph, in context of the recent regulatory framework, NFTs have received the inclusion of Virtual Financial Services Act, which also includes virtual tokens, virtual financial assets, electronic money, among others, based on distributed ledger technology (DLT). It is believed that MFSA has made the proposition to ensure NFTs removal from the virtual financial assets framework due to their reported uniqueness and non-fungibility.

“The inclusion of such assets within the scope of the VFA framework may run counter to the spirit of the Act, which sought to regulate investment-type services offered in relation to VFAs falling outside the scope of existing traditional financial service asset categories,“ the MFSA stated. 

On the basis of information by Cointelegraph, the governing authority is asking for feedback from stakeholders before official implementation of the new revisions into the feedback. In November, 2022, it’s believed that Malta was ahead in Southern Europe with regard to cryptocurrency regulations. 

Moreover, Cointelegraph noted that in 2018, the Maltese Parliament implemented three laws to create a regulatory framework for digital currencies. Reportedly, the country’s financial regulatory framework gives recognition to four separate categories of digital assets such as electronic money, financial instruments, virtual (utility) tokens and virtual financial assets.

(With insights from Cointelegraph)

Also Read: FX swap debt a $80 trillion ‘blind spot’ BIS says

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 06-12-2022 at 18:03 IST