Europe’s Crypto Regulations Struggle with Non-Transferable Assets

The European Union (EU) is navigating the complexities of regulating crypto assets, particularly those that are inherently non-transferable. Existing frameworks like MiCA and MiFID II often overlook these assets due to their unique properties. The EU Blockchain Sandbox emerges as a promising avenue for innovation by establishing clear standards for digital twins — faithful digital representations of these assets. This innovative approach aims to prevent misclassification and foster legitimate development within Europe’s growing crypto market, while ensuring legal clarity.