The European Union has approved the Markets in Crypto Assets (MiCA) regulations, which aim to regulate the largely unregulated cryptocurrency markets. The MiCA is part of a broader digital finance package called the Digital Operational Resilience Act (DORA), which seeks to protect the financial services sector from fraudulent activities.

The MiCA is expected to become law in July 2023, with the rules taking effect by January 2025 in stages. However, non-fungible tokens (NFTs) have been excluded from the scope of these regulations, although the regulations could indirectly impact the NFT sector by imposing anti-money laundering and counter-terrorism financing rules. This could lead to increased transparency and trust in the digital art and collectibles market, ultimately benefiting the NFT space.