CROATIA Law and Practice Contributed by: Lovro Badžim, Badžim Law Practice
10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs) Legal Framework, Market Practice and Sport In Croatia, NFTs are not regulated as a separate legal category. Instead, they fall within the broader concept of crypto-assets and, since 30 June 2024, are primar - ily governed by the EU Markets in Crypto-Assets Reg - ulation (MiCA). Croatia applies MiCA through national legislation on supervision and enforcement, with regu - latory oversight shared mainly between the Croatian Financial Services Supervisory Agency (HANFA) and the Croatian National Bank (HNB). In practice, most NFTs – where they represent unique digital rights such as artwork, collectibles, or access rights and do not qualify as e-money or asset-referenced tokens – fall under HANFA’s supervision. Issuers and service providers dealing with NFTs must comply with transparency, consumer protection, and anti-money laundering rules. Market participants and consumers may also file complaints with the compe - tent authority if regulatory breaches are suspected. The Croatian NFT market is still relatively small and emerging, especially compared to global markets. Activity to date has focused mainly on digital art, col - lectibles, and early experiments in sport. There are no specific legal barriers to issuing, buying, or selling NFTs in Croatia, provided EU and national regulatory requirements are met. In sport, NFTs are increasingly explored as tools for fan engagement and commercial innovation. Typical uses include digital collectibles (such as tokenised cards, highlights, or commemorative items), NFT- based ticketing to reduce fraud and control resale, and access tokens granting exclusive content, promo - tions, or fan participation. While Croatia has not yet seen a flagship NFT sports project, clubs in Croatia and the wider region – particularly in football – have tested or announced NFT initiatives aimed at fans and sponsors. NFTs offer clear opportunities for Croatian sports organisations, including new revenue streams, strong - er fan engagement, improved transparency through blockchain verification, and access to global audi -
ences. At the same time, they carry legal and practi - cal risks. Regulatory uncertainty remains, anti-money laundering and fraud risks are heightened, and intel - lectual property issues are critical, as NFT ownership does not automatically transfer copyright. In addition, certain institutional investors are legally restricted from investing in crypto-assets, including NFTs. Overall, NFTs in Croatia sit at the intersection of inno - vation and regulation: legally permitted and increas - ingly explored in sport, but still requiring careful struc - turing and compliance as the regulatory landscape continues to evolve. 10.2 AI In Croatia, artificial intelligence in sport is not regu - lated by a specific national law but is instead gov - erned by general sports regulation and broader EU rules on data protection, technology, and integrity. The Sports Act does not mention AI, but its obligations on data protection, database management, and sporting integrity are directly relevant to AI-driven tools such as performance analytics, video analysis, and biometric monitoring. The key legal framework comes from the EU level. Since August 2024, the EU Artificial Intelligence Act applies in Croatia, classifying AI systems by risk rath - er than by sector. Many AI uses in sport – especially those involving biometric data, health, or automated decision-making – may qualify as high-risk, triggering strict requirements on transparency, human oversight, accuracy, and security, while certain practices are pro - hibited altogether. In practice, AI is already being used in Croatian sport in line with wider European trends. Clubs and organi - sations apply AI for performance analysis, injury pre - vention, training optimisation, fan engagement, mar - keting, and, increasingly, officiating and competition management. 10.3 The Metaverse In Croatia, the metaverse is still at an early and largely experimental stage, particularly in the sports sector. Current activity is mostly limited to pilot projects, digi - tal presentations, virtual events, and experimental ini -
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