NFT: The European Parliament is considering future regulations

of NFT so far they have escaped the regulations of the MiCa law, but the European Parliament is already in the process of correcting the situation.

The European Union prepares its framework for NFTs

NFTs may no longer enjoy the success they had when they first hit the crypto market, but their influence is still big enough to scare the authorities. While the French government has announced that it is interested in immutable tokens and that it intends invest in itThe European Parliament sees small digital images in a completely different way.

The MiCa law, which was supposed to regulate a large majority of the crypto sector, stands out even before its implementation from many gray areas. Indeed, the text did not extend to certain spheres of the industry such as sports betting or even NFT. However, they find more and more use cases that prompt the European Union to strike. Therefore it would be a new regulation soon in preparation.

Before the big discussions begin, the European Parliament is awaiting a report which should shed light on the state of the art of immutable tokens, on their use and on the impact they have on crypto. The document may not address various security issues and the flights that takes place in its market. In any case, this should enable the European Commission to give a customized status to NFTs and draft a regulation accordingly. According to the deputy and promoter of the project Eva Kaili, the latter should be based more on the activity around digital images than on the object itself.

However, unlike the MiCa law which resulted from a certain fear of cryptos, the other framework for NFTs should serve to curb fraud and protect consumers but it can also be positioned in favor of the industry. Indeed, Eva Kaili has already stood out as a blockchain advocate. Despite everything, the future regulation may be based on European laws and include some monitoring.

France also wants to crack down on fraud

In France, NFTs may also become subject to certain laws. The Minister of Digital Transition, Jean-Noël Barrot, recently indicated that public money could be re-injected into non-fungible tokens. This implies, contrary to some popular beliefs, that the funds will be invested in digital imaging technology and not in speculative collections such as BAYC. So, for example, we could see these replace tickets during public events, a proposal that was formulated in view of the upcoming 2024 Olympic Games.

The French government’s interest in this crypto sector is not without some regulation. Indeed, Jean-Noël Barrot seems to be working hard on the rise of cybercrime, a phenomenon that cryptocurrencies but also NFTs know very well. Therefore, the latter can be given a framework in accordance with next initiatives fight in favor of cyber security, in order to limit the abuses suffered by investors in immutable tokens.

We are witnessing a sharp growth and transformation of crime in cyberspace. However, this situation plunges our fellow citizens into a form of digital insecurity and undermines confidence in technologies that nonetheless hold promise and progress.

Extract from circle by Jean-Noël Barrot regarding cybercrime in France

Source: Twitter account of Jean-Noël Barrot

By implementing a possible regulation, the French government hopes that the population will be better able to turn to new technologies, including blockchain, and that sectors such as crypto can develop more effectively.

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