The new anti-money laundering act of the European Union stipulates that the NFT platform is subject to this regulation

On March 3, the policy makers of the European Parliament are negotiating to amend the text of the EU Anti-money Laundering Act to emphasize that the NFT platform or other companies providing NFT-related services are bound by the regulation. This is different from the scope of the standard cryptocurrency rulebook set by the EU, and the cryptocurrency asset market regulation explicitly excludes them.

Interpretation of this information:

The European Parliament is looking to amend the EU Anti-money Laundering Act on March 3rd to include the regulation of Non-Fungible Tokens (NFTs) and companies that provide NFT-related services. Currently, the regulation for cryptocurrency assets excludes NFTs, making this new amendment significant.

An NFT can be defined as a unique digital asset that is verified on a blockchain. Because of their unique nature, NFTs have recently gained popularity in the digital art and collectibles market. NFT transactions bypass intermediaries, making it difficult to verify the legitimacy of the transaction and the identity of the parties involved. As such, the potential for money laundering and other illegal activities is high.

The European Union has been working on regulating the cryptocurrency asset market for some time now, and these regulations explicitly exclude NFTs. With this amendment, the EU is acknowledging the importance of regulating the NFT market as well to ensure that illegal activities are not being facilitated.

It is noteworthy that companies providing NFT-related services will also be bound by this regulation. These companies may include NFT marketplaces, platforms that facilitate NFT transactions, and NFT creators. By regulating these companies, the EU is ensuring that the entire industry is accountable for any illegal activities that may take place within it.

Furthermore, this amendment shows that the EU is keeping up with the fast-paced developments in the digital asset market. As this industry continues to grow, it is crucial that lawmakers keep up with new trends and technologies to ensure that the market is fair and transparent.

In conclusion, the amendment to the EU Anti-money Laundering Act to regulate NFTs and companies providing NFT-related services is a significant step in ensuring the integrity of the digital asset market. This move shows that the EU is committed to keeping up with technological advances and industry developments to create a fair and transparent marketplace.