A marketplace is the medium through which the organization of the sale of NFTs for digital assets or fiat currencies takes place. NFT marketplaces and virtual currency exchanges are not the same thing. The second one facilitates asset conversation, which is always a regulated activity in countries.
Types of marketplaces
There are different types of marketplaces online. Depending on the trait of NFT sold, they are classified as, universal and niche marketplace. Universal marketplaces are popular because they encompass individuals with a variety of interests rather than concentrating on a particular user demographic. Niche marketplaces are concentrated on specialized things, scarce assets, and draw customers with particular tastes. It is also popular.
And depending on the underlying technology, multiple regulatory regimes may apply to NFT marketplaces. They are,
1. Custodial in which users’ NFTs are under the administrators’ authority, retaining their keys and enabling them to carry out transactions or stop them at any moment. If the VASP regulation is put in place, these NFT marketplaces may be affected.
2. Auction in which NFT transactions are centrally organized and fees are taken from winning bids. They will probably fall under the e-commerce law’s auction regulations and call for a different license.
3. Non-custodial which means that users are in control of their private keys and can use them whenever they want to conduct transactions with NFTs. These final NFT marketplaces can typically run without the need for a specific license.
The NFT marketplace is a virtual marketplace for purchasing and selling distinctive digital goods. Some of the best NFT marketplaces are already growing and become a good source of income. We can also find many growing sectors of NFT marketplaces, which leads to an advanced digital future.