The European Union's crypto regulatory framework, MiCA, left the issue of NFTs somewhat ambiguous. But further rules to control these assets are possible if lawmakers Europarl_EN want it, an official has said. By jackschickler
Further European Union legislation on non-fungible tokens could be issued if requested by lawmakers, an official from the bloc's executive arm said on Wednesday.
, somewhat ambiguous. But that uncertainty could leave the door open for further policy actions, said Kerstens, who is also a senior advisor at the commission department responsible for financial services. MiCA requires crypto companies such as wallet providers to register with the authorities and meet consumer protection and financial stability norms. But officials also worry that, although NFTs ostensibly represent articles like artworks, they are prone to the same kind of abusive behavior that plagues more conventional financial markets, such as price manipulation.
The legislation “has a very peculiar sentence in there which says that, if an NFT is part of a large series or a collection that’s an indicator that it’s fungible, which is actually incorrect,” Kerstens said.