During a panel discussion at Korea Blockchain Week on August 2, European Union (EU) Advisor Peter Kerstens provided new insights into the EU’s efforts to create broad regulatory measures in the crypto and NFT spaces. According to Kerstens, NFT collections will be treated the same as cryptocurrencies under the Markets in Crypto-Assets (MiCA) law.
EU’s decision will make NFT sellers classified as Crypto-asset service providers!
With this new classification, EU citizens who want to sell an NFT collection will be classified as crypto-asset service providers (CASPs). As a result, they will need to obtain express authorization from the EU before offering their services (or wares) to the public. According to a press release, the EU hopes these measures will “protect investors and preserve financial stability while allowing innovation and fostering the attractiveness of the crypto-asset sector.”
This process is expected to take one to three months, with larger CASPs required to regularly submit reports on their activities to the European Securities and Markets Authority (ESMA).
A stance against money laundering
The EU hopes that an aggressive stance against NFTs will reduce instances of crypto assets used for money laundering and other illegal purposes. The EU will require anyone launching an NFT collection within its jurisdiction to submit a white paper on the NFT’s protocol as part of this new classification.
According to CoinDesk, Kerstens also stated that over-the-top promises about the future value of any given NFT project are explicitly prohibited. The EU hopes these measures will lay the groundwork for holding would-be rug pullers legally accountable for their actions.