MiCA (Market in Crypto Assets) is the European Union’s bill on digital asset markets. It is primarily focused on regulating cryptocurrency activity in Europe. A priori, it does not deal with NFTs, digital art and exclusive collectibles. The entry into force of this bill should be effective in 2024. A version of the bill, supposed to be the last, was released on September 21, after several months of talks. University of Kentucky law professor Brian Fyre recently commented on this version of the bill.
A law that classifies NFTs as securities
Brian Fyre recently commented on the final version of the MiCA regulations. He pointed to the fact that it treats blue chip NFT collections such as Bored Apes as securities. The project indicates that NFTs sold as components of large collections have few or no unique distinguishing qualities. To this end, they must be subject to the same regulations as cryptocurrencies.
For Fyre, through the MiCA, the EU qualifies PFP (profile picture) NFT collections as securities. Major collections like Bored Ape Yacht Club (BAYC), Cryptopunks, and Doodles would therefore be securities.
The law states:Issuance of cryptocurrencies as non-fungible tokens in a large series or collection should be seen as an indicator of their fungibility“. He adds that it is not enough to assign a unique identifier to a crypto project for it to be considered unique.
According to NFT and securities law expert Brian Fyre, Europe is tackling dominant NFT collections in its bill. He stated : “What they’re saying is that when you sell a collection of 10,000 NFTs, what you’re actually selling are shares of the project as a whole.»
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