South Korea Tightens Regulations on NFTs:
South Korea is introducing stricter regulations for non-fungible tokens (NFTs) under the Korean Virtual Asset User Protection Act. NFTs that exhibit characteristics of virtual assets, such as large-scale issuance, divisibility, and utility as a means of payment, will be subject to greater oversight.
New Guidelines Define Virtual Assets:
The Financial Services Commission has issued guidelines outlining the criteria for classifying NFTs as virtual assets. While NFTs traded for collection purposes are excluded, those used for payment or resembling securities will be regulated.
NFT Operators Must Report Activities:
Operators dealing with NFTs classified as virtual assets must report their activities to regulatory authorities. Failure to comply can result in penalties. The guidelines also encourage operators to seek guidance from financial authorities if unsure about the classification of their NFTs.
