EU proposes to extend AML standards to NFT platforms

Members of the European Parliament believe that the decentralized finance sector, including NFT marketplaces, should fall undersubject to EU anti-money laundering laws. This follows from the proposed amendments to the legislation.

Additions were made by representatives of the EuropeanGreen and Socialist parties. They noted that decentralized organizations or DeFi platforms should be subject to AML/CFT procedures, "regardless of their identification as a DAO or DeFi":

«Developers, owners or operators should assess the risks of money laundering and terrorist financing before launch and take appropriate measures to address these risks.»

Legislators also proposed to include wallets that are not managed by any regulated service provider.

Changes may also affect NFT platforms,acting as intermediaries for the trading of assets «that represent proof of ownership of works of art or collectibles». 

The authors of the amendments believe that such sites are also subject to EU money laundering legislation.

In addition, the Financial Times reports thatThe European Central Bank (ECB) is concerned about the development of regulation for the industry by individual countries before the adoption of uniform EU rules regarding the cryptocurrency market.

According to sources, the ECB intends to discuss with the member countries of the eurozone the need to harmonize the approach to regulating crypto assets.

Formerly the Council of the European Union and the European Parliamentpreliminary agreed on the provisions of the draft law on the regulation of cryptocurrencies MiCA. It describes the rules that apply to issuers of unsecured crypto assets, stablecoins, trading and custodial platforms.

The document does not affect NFT. Within the next 18 months, the European Commission may supplement it with relevant provisions.

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