According to BlockBeats, South Korea is set to implement a Virtual Asset User Protection Law, introducing a new stringent regulatory framework for the digital asset market to enhance transparency and security. The law particularly focuses on the regulation of Non-Fungible Tokens (NFTs), requiring companies issuing NFTs considered as virtual assets to adhere to strict evaluation and reporting standards.
The Financial Services Commission has issued detailed guidelines, clarifying the classification standards for NFTs as virtual assets, including parameters such as issuance scale, divisibility, and transaction utility. Operators must ensure that their business activities comply with regulatory requirements to avoid criminal penalties. The new regulations will take effect on July 19, marking a new era for South Korea in the regulation of digital assets such as NFTs.