Malta Seeks to Remove NFTs From Crypto Law

The move anticipates new EU legislation by excluding non-fungible assets.

AccessTimeIconDec 5, 2022 at 2:03 p.m. UTC
Updated Dec 5, 2022 at 4:44 p.m. UTC

Malta’s Financial Services Authority said Monday it wants to remove service providers for non-fungible tokens (NFTs) from the scope of its 2018 virtual-assets law as it prepares for new European Union crypto legislation.

The country’s 2018 Virtual Financial Assets (VFAs) Act requires service providers to be authorized and to publish white papers of investor information before they issue a digital token. That goes further than the EU’s Markets in Crypto Assets Regulation (MiCA), which is set to apply in Malta and across the bloc in 2024.

“The authority considers that it would be prudent that certain VFAs, which display clear characteristics of uniqueness and non-fungibility, also be excluded from the VFA framework,” the regulator said in a "consultation" paper. During a period of consultation, interested parties can provide feedback to proposed rule changes. The consultation period will end on Jan. 6.

NFTs, a digital record of ownership of an asset like artwork or real estate, had limited use for investment or payment purposes, the Maltese regulator said. Under the final draft of MiCA, NFT service providers won’t have to register as long as their assets are assessed as being genuinely non-fungible.

Malta, one of the EU’s smallest member states, was one of the first to set its own crypto registration regime. Its existing law includes most NFTs.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jack Schickler

Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Read more about