This chapter examines the functional nature of non-fungible tokens (NFTs) in Web3 space such as the Metaverse, and provides a framework for the financial regulation of NFT transactions. The aim is to identify any paradigm shift in the understanding of (1) financial assets in private law, (2) financial services that may be provided in a more decentralised market, and (3) policies and methods of regulatory intervention. Property law is important for defining what NFTs are according to their functions and the legal objectives of certainty, justice, and innovation. Regulation will play a role in mitigating risk, proactively managing imaged risks or retroactively managing any risks that private law has not been able to address. In financial law, regulations must play an active role in ensuring financial stability, investor protection, market integrity, competition, and innovation. Technology such as ‘code as law’ will now play an even more pivotal role in the governance framework. Policy is determined by the development of the underlying technology, the players in the Metaverse, and by regulatory competition.