NFT Platforms & the EU AML Dilemma

In our latest presentation, we take a deep dive into the intricate world of NFT Platforms, particularly in the context of the proposed EU Anti-Money Laundering Regulation (AMLR). The focus is not just on the regulations themselves but on the varied and rich landscape of NFT use cases that extend well beyond the financial sector.

📌 Key Highlights:

1. Beyond Finance: The Diverse World of NFTs: We explain how NFTs are revolutionising areas like e-commerce, digital art, and gaming, emphasising that these applications should not be blanketly subjected to financial regulatory standards. They’re a technical standard, a “primitive” to build upon. A little like paper or the PDF format: it’s not because you can print bills on paper or write options contracts in PDFS that all PDFs and all pieces of paper should be subject to financial regulations.

2. Regulatory Overreach Concerns: We take a look at why policy-makers and regulators need to avoid overreach into non-financial sectors like e-commerce, recognizing the unique nature of these platforms compared to traditional banking systems.

3. Realistic Regulatory Approaches: The presentation argues for tailored regulatory frameworks that acknowledge the distinct characteristics of NFTs in various contexts, rather than a one-size-fits-all approach.

4. Web3 vs. Web2 Regulatory Parity: We try to highlight the inconsistency in applying stringent financial regulations to NFTs onchain, when similar standards are not imposed on analogous platforms in the old web.

This is the presentation’s table of content:

• Background

• The Web3 Promise & Relevance for the EU

• NFTs & Use Cases

• Challenges with Current AMLR Scope

• Regulatory Considerations: NFTs and AML

• AMLR Legislative Timeline

• Conclusion: What the EU Needs