A new amendment of the EU Markets in Crypto Assets regulation (MiCA), according to a leaked document, apparently makes mention of fractionalized NFTs.
The historic bill will welcome stringent cryptocurrency controls. According to insiders who spoke to CoinDesk, the MiCA is virtually finished but is still open for suggestions. Fungible tokens expressed as one NFT could resemble securities under a new regulation.
“The issuance of crypto assets as non-fungible tokens in a large series or collection should be considered as an indicator of their fungibility,” text at the beginning of the final version of MiCA reportedly says (our emphasis).
This part of the bill, referred to as a recital, establishes the purpose behind MiCA’s provisions even if it is not legally enforceable. A recital can aid legislators in “interpreting the extent of the legislation,” according to CoinDesk.
NFTs were not mentioned in earlier iterations of MiCA. In fact, the new legislation will not apply to assets that are actually non-fungible. However, a group of interchangeable items labeled as a single distinct token has lawmakers scratching their heads.
The completed legislation mandates that regulators “adopt a substance over form approach under which the features of the asset in question should determine the qualification, not its designation by the users.”