Any type of asset can be tokenised, i.e., registered on a blockchain or other type of distributed ledger technology (DLT). Hence, the resulting cryptoassets take many forms, including currency/payment tokens, security/financial/investment tokens, and utility tokens. The technology offers new opportunities for issuers, investors, and the financial system at large but also challenges, including some new risks in addition to those already known by conventional financial systems. The EU regulatory framework for cryptoassets seeks to address these challenges while facilitating innovation and competition across the European Single Market. These rules have evolved since the EBA’s 2014 recommendations on AML/CTF provisions through the 2018 FinTech Action Plan and the 2020 Digital Finance Package. This has now resulted in an updated AML/CTF framework, the Markets in Crypto-Assets Regulation (MiCA) as a bespoke piece of financial regulation to fill gaps in existing EU financial law, the Pilot Regulation as the EU’s “regulatory sandbox” for DLT market infrastructures, and the Digital Operational Resilience Act (DORA) that promotes cybersecurity in the financial sector.

Fueled in part by the wealth created from digital currencies, major art dealers such as Christie’s and Sotheby’s have embraced the sale of non-fungible tokens (NFTs) attached to unique digital works of art. NFTs, how they are related to the blockchain, and the evolution of the market for digital art is the subject of this chapter. Despite recent decreases in value, it appears that digital art can be added to the growing list of uses for blockchain technology, which is now becoming a part of modern life. This chapter proceeds in five sections. First, the overview of the evolutionary progression of blockchain technology in the form of NFTs. Second, a description of the emergence of the market for digital art. Third, an explanation and historical account of digital art and related recent issues. Fourth, a coverage of the abrupt decline in the market price for many NFTs. And last, a conclusion, which focuses on how the dramatic extension of blockchain and other digital technology to the world of art represents a new and exciting platform for creative expression. This chapter offers a valuable addition to the literature by providing a readable introduction and overview of what is now known about the likely impact of blockchain technology and NFTs to art. Additionally, this important development should have a significant impact on the future of innovation and property law.