German authorities allow the possibility of recognizing NFTs as securities
BaFin clarified that currently none of the non-fungible tokens has received such a status
08.03.2023 - 16:00
224
1 min
0
No non-fungible tokens (NFT) are yet classified as securities – a status that would require licenses and money laundering supervision, German financial regulator BaFin said Wednesday.
Using the blockchain-based tokens that denote ownership of a digital asset for pure speculation doesn’t make it an investment instrument, but some NFTs in future could fall under financial regulations – for example, if a large set offer the same interest payments, the article by BaFin officials said.
“So far, BaFin is not aware of any NFTs classified as securities in the regulatory sense,” the article said. “However, it cannot be ruled out that NFT will be classified as a security in the future.”
Financial instruments would make linked services like investment advice or brokerage subject to regulatory scrutiny – but proof of ownership of collectibles or artwork are unlikely to count under money laundering laws, the article said. It added that regulators need to take account of the stability and integrity of the financial system.
How to treat NFTs has been a crucial issue for the Markets in Crypto Assets (MiCA) regulation, set to apply in Germany and across the European Union within a few years. The final deal requires regulators to look at the substance of what an NFT offers, rather than any mere marketing claims.
In the U.S., whether particular crypto assets fall under the Securities and Exchange Commission’s purview has also been a point of contention in a range of legal cases.
This material is taken from the website https://www.coindesk.com.
Useful material?
Crypto regulations
According to Brad Garlinghouse, the magnitude of the impact of such harassment on the crypto ecosystem is beyond prediction
May 13, 2024
Crypto regulations
The condition is part of the exchange’s agreement with authorities to plead guilty to regulatory violations
May 13, 2024
Market
The USDT issuer responded by saying that the report lacked sufficient data to support such claims
May 10, 2024
Incidents
The breach was reported to Binance by the head of its monitoring department, who was later fired
May 9, 2024
Trends
In April, the project’s launch on the crypto exchange was postponed twice
May 9, 2024
Incidents
Users were urged to withdraw funds before the site was completely shut down on November 7
May 8, 2024