The EU will expand its AML standards to include NFT platforms.

MEPs think the decentralized financial industry, including NFT platforms, should be subject to EU anti-money laundering regulations, according to suggested modifications to current legislation. The modifications were proposed by representatives of the European Green Party and the Socialists, who highlighted that decentralized organizations or DeFi platforms should be subject to AML/CFT processes “independent of their identity as DAO or DeFi.”

According to them: “Developers, owners or operators should assess risks of money laundering and terrorist assessments before launching or using a software or platform and take appropriate measures in order to mitigate money laundering and terrorist financing risks in an ongoing and forward-looking manner.”

Wallets that are not administered by a licensed service provider have also been recommended by lawmakers.

The reforms may also have an impact on NFT platforms that serve as middlemen for the trade of assets “that indicate ownership of a unique digital or physical asset, such as works of art, real estate, digital collectibles and gaming goods, and any other valuable.”

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Kally is a P2P auction platform for NFTs, powered by Substrate & IPFS. Our goal is to build the most interoperable and user-friendly NFTs marketplace ever, allowing artists and everyday people to unleash the true power of the virtual world.

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Kally

Kally

World’s leading cross-chain & user-friendly NFT marketplace. Polkally is reinventing the way people interact with art.