Art as crypto-assets: implications of MiCA regulation. Exploration through 3 case studies, namely: fractional ownership, platforms and digital marketplaces, social and cultural investments

Abstract

According to the Global Wealth Report 2023, the forecast of global wealth is expected to reach $629 trillion by 2027. This underscores the growing significance of various investment avenues, including the emerging crypto-art market. In the middle of this landscape, tokenization emerges with a significant potential for change, leveraging blockchain technology to redefine business practices, management and value in the digital sphere. Understanding the technology behind NFTs and other tokens is imperative to grasp their potential implications. By using blockchain's inherent attributes of security, scarcity, and validity, NFTs offer novel opportunities. Indeed, their applications cover various industries, indicating a nascent potential yet to be fully realized. Nevertheless, tokenization technology is still in its early stages of development. For this reason, its potential to radically change the financial landscape requires the creation of a regulatory framework to ensure accountability and protect the interests of investors. Enforcement is essential to promote trust and reduce the risks associated with this new technology. Embracing these changes with a proactive and informed approach is paramount to navigating the disruptive landscape of the digital world. This is the reason that motivated our research. As it became obvious to understand the dynamics, our exploration has been guided by three practical cases, namely: fractional ownership, platforms and digital markets, and social and cultural investments. We analyzed the attributes of art as a financial instrument, then juxtaposing them with the new paradigm of crypto-arts. All of these considerations have been undertaken within a framework rooted in financial and legal logic, oo know what are the implications of the entry into force of the MiCA regulation since June 2023.