As part of its preparations for new European Union (EU) crypto legislation, Malta’s Financial Services Authority announced plans to exclude service providers for non-fungible tokens (NFTs) from the scope of its 2018 virtual assets law.
Before issuance, the country’s 2018 Virtual Financial Assets (VFA) Act requires service providers to be authorised and to publish white papers of investor information. That means it could go further than the EU’s Markets in Crypto Assets Regulation (MiCA), which is set to take effect in Malta and across the EU in 2025.
According to the Maltese regulator, NFTs, which are digital records of ownership of an asset such as an artwork or real estate, have limited use for investment or payment purposes. Under the final draft of MiCA, NFT service providers won’t have to register as long as their assets are assessed as genuinely non-fungible.
NFTs, a digital record of ownership of an asset like artwork or real estate, had limited use for investment or payment purposes, the Maltese regulator said. Under the final draft of MiCA, NFT service providers won’t have to register as long as their assets are assessed as being genuinely non-fungible.
Malta, one of the EU’s smallest member states, was one of the first to set its own crypto registration regime. Its existing law includes most NFTs.
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