South Korea's CMB Resolved Another Cryptocurrency Uncertainty

FSC, which regulates South Korea's financial markets, has eliminated another uncertainty in the cryptocurrency field.

South Korea's Financial Services Commission (FSC) has published guidance on Qualified Intellectual Titles (NFT).

It will be described as crypto

According to the FSC's decision, NFTs will be considered ordinary cryptocurrencies if they no longer have the features that distinguish them from other cryptocurrencies.

FSC will consider NFTs, which are mass-produced, easily exchangeable, and can be used to purchase goods and services, as cryptocurrencies. Digital tokens that cannot be transferred and have little or no economic value will be considered normal NFTs.

An example of this is a concert ticket turned into an NFT.

An FSC official emphasized that a collection containing one million NFTs can be bought, sold and used for shopping like other cryptocurrencies.

It will come into force next month

Cryptocurrency regulations in South Korea will come into force on July 19. The Virtual Asset Users Protection Law was prepared to prevent irregularities in the cryptocurrency markets.

This law aims to combat crimes such as manipulating cryptocurrency prices and committing fraud.

According to the law, cryptocurrency service providers will have to keep more than 80% of deposits in cold wallets to protect users' money. These organizations will also need to have insurance.