According to ChainCatcher, South Korea is about to implement the Virtual Asset User Protection Act, which will introduce a new strict regulatory framework for the digital asset market to enhance market transparency and security. The law pays special attention to the regulation of NFTs, requiring companies that issue NFTs that are considered virtual assets to comply with strict assessment and reporting standards.
The Financial Services Commission has issued detailed guidelines that clarify the classification criteria for NFTs as virtual assets, including parameters such as issuance size, divisibility, and transaction utility. Operators need to ensure that their business activities comply with regulatory requirements to avoid criminal penalties. The new regulations will take effect on July 19, marking an era of regulation of digital assets such as NFTs in South Korea.
