Are there different KYC and AML requirements for different types of NFTs?
Under the current Dutch regulation NFTs are regulated under the Dutch implementation of the
Fifth Anti Money Laundering Directive (“AMLD5”): Regulation for the prevention of money
laundering and terrorist financing (Wet ter voorkoming van witwassen en financieren van
terrorisme, the “Wwft”).
NFTs will be regarded as a virtual currency under the Wwft. Art. 1(1)(b) Wwft defines ‘virtual
currency’ as “a digital representation of value that is not issued or guaranteed by a central bank
or a public authority, is not necessarily attached to a legally established currency and does not
possess a legal status of currency or money, but is accepted by natural or legal persons as a
means of exchange and which can be transferred, stored and traded electronically”.
The current Dutch regulation does not contain a specific definition for NFTs and does not
distinguish between different types of NFTs. Therefore, there are no specific KYC and AML
requirements for different types of NFTs.
It is possible that different KYC (know your customer) and AML (anti-money laundering) requirements are applicable to different types of NFTs (non-fungible tokens). The specific requirements that apply to a given type of NFT may depend on factors such as the type of digital asset represented by the NFT and the intended use of the NFT. In India, they’ll be the same standards /regulations issued by the Reserve Bank of India.
If it is a security token, the NFT will have stricter rules, under the terms of the CVM
regulations, the body responsible for disciplining securities in Brazil.
There is no difference in KYC procedures for different types of NFTs. KYC procedures are required under anti-money laundering and anti-terrorist financing regulations. If an entity provides services that fall within the scope of these regulations, a KYC procedure may be mandatory from a certain threshold of transaction value expressed in euros.