The treatment of NFTs in the regulatory arena is an important and ever-changing issue.Case in point, this treatment may be changing within Malta. Malta Financial Services Authority (MFSA) has taken Request a review Treatment under the current virtual financial asset framework.
How NFTs Will Change in Malta
Four digital assets are allowed in Malta: virtual financial assets, electronic money, financial instruments and virtual tokens. Currently, NFTs are classified in Malta under the Virtual Financial Assets Act and other digital assets such as cryptocurrencies. The problem is that MFSA does not view his NFTs as assets that can be used as fiat currency in the same way as cryptocurrencies due to their irreversible nature.
As such, we are currently accepting requests from stakeholders and the general public to exclude NFTs from their current category and include them. “This would be contrary to the spirit of the Act, which sought to regulate investment-oriented services provided in connection with VFAs outside of existing traditional financial services asset categories.” –MFSA
Finding regulatory consensus is an ongoing task for governments. It will be interesting to see where NFTs are eventually removed from this category and then placed.
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*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Tokoni Uti has written extensively on blockchain and cryptocurrencies over the years. Her work has been featured on sites such as BTCmanager and Blockchain Reporter. She has a degree in Corporate Communications.
