The Qatargate bribery scandal roiling Brussels has derailed the European Parliament’s push for legislation on NFTs.

The Parliament's report on NFTs was withdrawn following the arrest and criminal charge of former vice president of the European Parliament, Eva Kaili, for allegedly accepting bribes from Qatari officials, according to the office of Dan Nica, an MEP who redistributed the rest of Kaili’s files as she was suspended from her political group. 

Before her arrest, Kaili, a member of the Parliament’s Socialists and Democrats group, was preparing to lead a report outlining bespoke policy for NFTs. The initiative was meant to address a policy gap, as NFTs were ultimately largely left out of the comprehensive Markets in Crypto-Assets (MiCA) regulation. It would have incentivized the European Commission to follow through with a legislative proposal.

(by Inbar Preiss)