Malta Plans To Exclude NFTs From Crypto Law

Malta’s Financial Services Authority announced Monday that it intends to exclude service providers for non-fungible tokens (NFTs) from the ambit of its 2018 virtual-assets law.

According to the Maltese regulator, NFTs, which are digital records of ownership of an item such as artwork or real estate, have limited value for investment or payment reasons. NFT service providers will not be required to register under the final draft of Markets in Crypto Assets Regulation (MiCA) if their assets are determined to be really non-fungible.

The regulator said in a document:

“The MFSA is seeking feedback from relevant stakeholders prior to proceeding with the implementation of the amendments to the VFA Framework being proposed in the Consultation.”

Interested parties can submit input on proposed rule changes throughout the consultation period. The public feedback session will expire on January 6.

Malta was among the first to establish its own crypto registration framework.

Before issuing a digital token, the country’s 2018 Virtual Financial Assets (VFAs) Act requires service providers to be approved and to publish white papers with investor information. That goes beyond the EU’s MiCA, which is slated to take effect in Malta and throughout the EU in 2024.

The MFSA has the powers to regulate, monitor, and supervise the financial sector of Malta, protecting the interests of the consumers and promoting the market transparency and efficiency. It has the powers to review business practices, advise the government on policies, and to investigate potential harmful and unfair practices in the financial industry.

The MFSA is a member of the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Securities and Markets Authority, the International Organization of Securities Commissions, and the International Association of Insurance Supervisors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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