Crypto experts have called for regulation to allow for the development and evolution of new technology.
European Union regulators have held a meeting with experts from some of the leading crypto companies, such as Ripple or Atomic Hub, to study the future of legislation in the euro area and industry recommendations on how to implement regulation.
In this regard, some crypto experts, such as Markus Infager of Ripple, have advised that regulate “use cases and not technology”, while recommending that this flourishing industry be strengthened and this new economic sphere be promoted.
This meeting is part of an educational exercise that is being carried out in the European Parliament, promoted by some political groups, in which it is intended Educating MPs on Blockchain, Cryptocurrencies and NFTs, in view of the creation of the MiCA regulatory framework.
NFTs as fungible financial instruments
One of the objectives of this meeting is to address current problems of the MiCA regulatory frameworkFor example, the latest draft excludes most NFTs from the law, except those that can be considered as “fungible financial instruments”, something that is left to the interpretation of regulators, which could be problematic if a consensus is not reached on what is considered fungible and what is not.
On this topic, Fabian Volgelsteller, creator of the ERC-20 token standard, explained that treating NFTs exclusively as financial instruments It is not the best approach.
Most crypto industry experts have agreed that the NFTs are not financial instrumentsAs an example, they have explained all the use cases of these tokens in the real estate, entertainment and commerce sectors.
On the other hand, experts advise that as new use cases emerge, regulations be created for them, while leaving space for development and innovation.
On regulation, most experts and industry participants are in favour of it, although they express concerns about the approach and implementation.
The future of NFTs and crypto regulation in Europe
The European Parliament continues to work on developing a regulatory framework that works across the European Union. Although the proposal for MiCA Law has already advanced several steps towards its implementation, still has not been officially approved.
The European Commission launched in September a Virtual and Augmented Reality Industry Coalition that should serve as a bridge between the Virtual Reality industry and regulators, with the aim of creating a legal framework for Virtual and Augmented Reality.
On the other hand, NFTs may face stricter regulation in the future, as regulators are working on an anti-money laundering package that is currently being negotiated in Parliament and is expected to be voted on in early 2023.
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