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NFT Regulation in Germany

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On March 8, the BaFin Journal of the German Federal Financial Supervisory Authority (BaFin) reported that in the regulatory review of NFT, the BaFin process is…

NFT Regulation in Germany

On March 8, the BaFin Journal of the German Federal Financial Supervisory Authority (BaFin) reported that in the regulatory review of NFT, the BaFin process is the same as the review of alternative tokens. So far, NFT has not been classified as securities in the regulatory sense, but it is not ruled out that NFT will be classified as securities in the future. For example, this may happen if 1000 NFTs contain the same repayment and interest requirements. In addition, NFT may be subject to anti-money laundering supervision by BaFin. （BaFinJournal）

German Federal Financial Supervisory Authority: In the regulatory sense, NFT has not been classified as securities

Analysis based on this information:


The BaFin Journal of the German Federal Financial Supervisory Authority (BaFin) has reported that the regulatory review of non-fungible tokens (NFTs) follows the same process as that of alternative tokens. Currently, NFTs have not been regulated as securities, but BaFin has not ruled out the possibility of classifying them as such in the future. This could happen if multiple NFTs represent the same repayment and interest requirements.

BaFin’s stance on regulating NFTs aligns with its current approach to alternative tokens, which are not subject to securities regulations unless they meet specific criteria. However, NFTs could potentially fall under securities regulations if they meet similar criteria in the future.

Moreover, BaFin has also stated that NFTs may be subject to anti-money laundering (AML) supervision. This means that if an NFT poses a high risk of facilitating money laundering or terrorist financing, BaFin could require its issuer or owner to comply with AML regulations.

The statement from BaFin highlights the need for regulatory clarity in the emerging NFT market. As NFTs are a relatively new concept, there is still much uncertainty surrounding their classification and regulation. However, BaFin’s assertion that NFTs will be reviewed in the same manner as alternative tokens provides some guidance to potential issuers and investors.

In conclusion, BaFin’s report indicates that NFTs are not currently classified as securities in Germany. However, this could change in the future if certain criteria are met. Additionally, NFTs may be subject to AML supervision if they pose a high risk of facilitating financial crime. The regulatory review process for NFTs aligns with that of alternative tokens, but further clarity and guidance will be needed as the market evolves.

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