Malta Financial Services Authority said its wants to remove service providers for NFTs from the scope of its 2018 virtual assets law.
The Virtual Financial Assets Act, which also covers electronic money, virtual tokens, virtual financial assets, and all financial instruments based on Distributed Ledger Technology, is now the regulatory framework that applies to NFTs.
However, the MFSA is recommending that NFTs be taken out of the framework for virtual financial assets because they are distinct and nonfungible and can’t be utilized as investments or as a means of payment for goods and services. According to the MFSA,
“the inclusion of such assets within the scope of the VFA framework may run counter to the spirit of the Act, which sought to regulate investment-type services offered in relation to VFAs falling outside the scope of existing traditional financial service asset categories”
Before formally integrating these new adjustments into its structure, the governing body is currently seeking input from stakeholders. According to a November report, Malta was setting the standard for cryptocurrency legislation in Southern Europe.Three laws establishing a thorough regulatory framework for blockchain technology and virtual currencies were passed by the Maltese parliament in 2018.
The Innovative Technological Arrangements and Services Act gives the Malta Digital Innovation Authority the authority to supervise the registration of technology service providers, while the Virtual Financial Assets Act regulates the area of initial coin offerings, digital assets, digital currencies, and related services.
Four separate forms of digital assets are recognized by the nation’s present financial regulatory framework and are subject to various rules: electronic money, financial instruments, virtual (utility) tokens, and virtual financial assets (VFAs).
