No non-fungible tokens (NFTs) are yet classified as securities – a status that would require licenses and money laundering supervision, German financial regulator BaFin said Wednesday.
Using the blockchain-based tokens which denotes ownership of a digital asset for pure speculation doesn’t make it an investment instrument, but some NFTs in future could fall under financial regulations – for example if a large set offer the same interest payments, the article by BaFin officials said.
“So far, BaFin is not aware of any NFTs classified as securities in the regulatory sense,” the article said. “However, it cannot be ruled out that NFT will be classified as a security in the future.”
Financial instruments would make linked services like investment advice or brokerage subject to regulatory scrutiny – but proof of ownership of collectibles or artwork are unlikely to count under money laundering laws, the article said. It added that regulators need to take account of the stability and integrity of the financial system.