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HomeBusinessEU Parliament Proposes To Bring NFT Trading Platforms Under Anti-Money Laundering Law:...

EU Parliament Proposes To Bring NFT Trading Platforms Under Anti-Money Laundering Law: Report

HIGHLIGHTS:

  • It is uncertain when these legislation will be approved.
  • The revisions still need to be approved by parliament.
  • EU is observing a global crypto ex

INTRODUCTION:

The European Union (EU) market is seeing growth in the entire cryptocurrency sector. The antimoney laundering statute has been modified by the EU Parliament in order to specifically include NFT trading platforms. The blockchainbased digital collectibles known as NFTs, or Nonfungible Tokens, are based on a variety of real-world aspects, such as artwork, famous people, and video game characters.

In various jurisdictions, like India and South Korea, the classification of NFTs as virtual assets has been a contentious issue.EU legislators have proposed a number of potential amendments to the antimoney laundering rules. The changes are intended to stop the banking system from being abused for terrorism or money laundering.

eu parliament proposes to bring nft trading platforms

According to the plan, “crypto asset service providers, trading or serving as intermediaries for importing, minting, selling, and purchasing of nonfungible crypto assets” will be subject to the antimoney laundering regime’s scrutiny.As valuable digital assets that are frequently acquired in exchange for cryptocurrencies, NFTs can be used as a tool to speed up cross border financial transactions.

As a result, the EU’s legislators are being cautious when it comes to limiting the use of NFTs for illegal activities.The changes are still awaiting the necessary permissions. NFT platforms would be considered “obligated entities” for purposes of the EU’s anti-money laundering regulations if the proposed modifications are put into effect.

The European Union recently announced that cryptocurrency companies must seek a licence from a national authority in order to create and sell digital tokens in an EU state. Operators will be able to serve the entire 27country bloc from a single base, and they will be responsible for any cryptocurrency assets lost from customers’ digital wallets. Before the agreement can take effect, which won’t happen until at least 2023, EU member states and the European Parliament must formally ratify it.

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