Regulatory Perspectives on NFTs Globally:

*EU Approach*

- The EU's Markets in Cryptoassets Regulation (MiCA) proposal may regulate certain NFT-related market activities.

- NFTs may be exempt from the requirement to publish a white paper for public offerings.

- Companies providing services related to NFTs may need to meet the requirements for cryptoasset service providers (CASPs).

- The European Securities and Markets Authority (ESMA) will establish a register of all CASPs.

*UK Approach*

- The UK Financial Conduct Authority (FCA) has guidance that describes three categories of cryptoassets, with NFTs likely falling under unregulated tokens.

- If an NFT exhibits characteristics akin to e-money or a security token, it may fall within the UK's regulatory perimeter.

- The UK government has transposed the EU's Fifth Anti-Money Laundering Directive into national law, expanding the scope of regulations to include cryptoasset exchange providers and custodian wallet providers.

*AML/CFT Requirements*

- Existing EU and UK anti-money laundering rules applicable to certain art market participants may apply to NFT sales of €10,000 or more.

- AML/CFT programs, client due diligence, and suspicious activity reporting may be required.

*Other Jurisdictions*

- In the UAE, Dubai's Virtual Asset Regulatory Authority (VARA) regulates virtual assets, including NFTs.

- The US has taken a state-by-state approach, with some states considering NFTs as securities.

*Key Takeaways*

- NFT market participants should consult with their advisers to understand potential impacts of regulations on their licensing, market communications, and compliance frameworks.

- Art market participants should consider updating their anti-money laundering policies to account for NFT-related transactions.

- NFT marketplaces should consider whether they may be subject to anti-money laundering requirements for art market participants.