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The authorities of Malta intend to exclude NFT from the regulation of crypto assets

The Malta Financial Services Authority (MFSA) will remove NFTs from regulation of virtual financial assets in preparation for the European Union Cryptocurrency Regulation Bill (MiCA).

The 2018 Digital Financial Assets (VFA) Guidelines require creators of non-fungible tokens to compile technical documentation for them. These rules were created in conjunction with the Malta Digital Development Authority (MDIA) to regulate crypto asset issuers and make the island a hub for technological innovation.

Recently, the MFSA published a document announcing that MiCA may not apply to unique tokens, and this eliminates the need for issuer registration when issuing or providing NFT-related services.. The MFSA suggested that collectible tokens, due to their non-fungibility, are difficult to use for investment purposes or for payments.. Therefore, the inclusion of NFTs in the VFA structure may be contrary to the regulations that were originally developed to regulate investment-related services.

The Government of Malta has not yet made a final decision on the exclusion of NFTs from the VFA, therefore the Financial Services Authority is ready to accept proposals from interested parties until January 6, 2023.

Many industry participants believe that the MiCA bill will simplify the work of cryptocurrency companies in the European Union, since a single rather than a fragmented regime for regulating crypto assets will be created on the continent.