NFT Is Receiving Attention On The Governmental Level

While many are talking about NFTs dying, the reality is that the concept is just gaining momentum with more credible companies entering the arena.

With the arrival of Nike, Disney, Starbucks, Coca-Cola, and many other established brands, it is hard to call NFTs a thing of the past. On the contrary, recent events in China and Malta are enough to say that NFTs have a bright future.

Malta wants to introduce regulations around NFTs

The Malta Financial Services Authority (MFSA) will be implementing new regulations to treat NFTs as goods and services.

Non-fungible tokens and transactions involving them will no longer be under the oversight of the Virtual Financial Assets Act. The framework is already in place, the only question is whether NFTs will be defined as subjects of VFA.

MFSA argues that NFTs are assets since they cannot be used for investment purposes or take place of a currency in retail. Malta is often one of the nations where financial regulations are invented and later adopted by other economies. Hopefully, the resolution will be reached as soon as possible.

China recognizes NFTs as virtual property under national law

The Internet Court of Hangzhou rules that NFTs are properties with inherent characteristics like value, availability, traceability, and ownership. The court says that these items are network virtual properties and should be treated as such according to Chinese law.

The next step is to define NFTs in the legal sector and provide a set of criteria upon which judgments will be made.

The current stance of the court is that the legal system still does not clearly stipulate the status of NFTs. However, the fact that they are recognized as virtual property is a significant move in the right direction.

The future is non-fungible

Skeptics may continue rattling about the inefficiency or redundancy of NFTs, but the fact is the whole world is moving toward adopting them.

Established global brands are issuing their tokens, unique communities form on their own, and nations are starting to recognize these assets as something tangible and requiring regulations.

By Edward Richardson
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