Germany: Digital Collectible NFTs Not Securities

NFTs are also not classified as investments, but that too could change

article-image

muhammadtoqeer/Shutterstock.com modified by Blockworks

share

Germany’s finance watchdog says it hasn’t found any NFTs that can be classified as a security, but that doesn’t mean they won’t crop up.

BaFin says it studied different kinds of NFTs: digital collectibles, across gaming and the metaverse (including virtual real estate). It considers NFTs to be securities if they:

  • bare hallmarks of regular securities (membership rights or contractual claims, like stocks or debt),
  • are transferable,
  • and can be traded on the financial market.

“So far, BaFin is not aware of any NFTs that are to be classified as securities in the regulatory sense,” BaFin said (automatically translated.

“On the one hand, the tokens have so far lacked embodied rights similar to securities. And on the other hand, NFTs are usually provided with individual rights and content, so that standardization and thus tradability in the sense of the regulatory concept of securities is ruled out.”

The distinction ultimately boils down to the rights an NFT issuer associates with the digital asset and how it will be used after the token is purchased, the report said. 

“With the currently observed use of NFT, in particular for the tokenization of digital works of art, the qualification as a financial instrument in the form of an investment or a debt security is not necessarily necessary,” BaFin said.

Rather than Bored Apes or CryptoPunks being securities, Bafin would more so consider this an example of an NFT security: 1,000 NFTs that all embody the same repayment and interest claims.

Bafin noted that mere speculation that a token can generate profit is not sufficient reasoning to classify an NFT as an investment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (3).png

Research

Pear Protocol has proven its market fit through its pair-trading infrastructure, sustaining consistent trading activity despite recent headwinds. Its strategic pivot toward Hyperliquid integration represents a major growth catalyst amid industry consolidation. While short-term token unlocks present challenges, current valuations and liquidity conditions may offer compelling opportunities for investors.

article-image

For just $54, you, too, could send a memecoin 500% higher

article-image

Memecoins, tech, and inflation have dominated the first half of the year

article-image

As the Trump administration continues to test Fed independence, markets are beginning to react

article-image

An Aave interest rate shock prompted over 475,000 validators to exit and pushed stETH into a prolonged depeg

article-image

While Roman Storm’s team is set to present its case, it’s not yet clear if the Tornado Cash founder will testify

article-image

A wireless network inspired by lost drones is now helping telco carriers reach your phone indoors