Are NFTs regulated under MiCA?

Truly unique NFTs are excluded from MiCA. But large series, collections and fractional NFTs can be treated as regular crypto-assets. Regulators look at substance, not at the "NFT" label.

What MiCA covers

The EU Markets in Crypto-Assets Regulation sets rules for issuing crypto-assets and for the providers that trade, hold or exchange them. It excludes crypto-assets that are unique and not fungible with other crypto-assets.

When an NFT is not really unique

• A collection issued in a large series of near-identical tokens may be treated as fungible.
• Fractional NFTs, split into many interchangeable parts, behave like ordinary crypto-assets.
• Tokens marketed mainly as investments may fall under MiCA, or under financial instruments rules if they work like securities.

European supervisors have published guidance on how to assess these cases, and they apply it case by case.

Other rules still apply

Even when MiCA does not apply, anti-money laundering rules, consumer protection, tax law and copyright law can. Marketplaces that also offer crypto services may need a MiCA license for those activities.

What it means for payment operators

If your merchants sell NFTs to EU customers, their payment provider will want to understand what is being sold. Collecting that information in onboarding questionnaires, and reviewing it as part of compliance, helps you decide which NFT sellers you can support.