Korea Financial Services Commission confirms that NFTs are not regulated

South Korea’s Financial Services Commission (FSC) issued a public statement today reiterating that Non-fungible tokens (NFTs) are not virtual assets and are not regulated.

Confirmation of the decision not to keep the NFTs regulated came afterwards a review of updated guidance from the Financial Action Task Force (FATF). The FATF Guidance Report, dated October 28, states that “NFTs or crypto collectibles are generally not considered depending on their characteristics [Activos virtuales]”.

On November 5, an FSC branch official told journalists in a statement:

“Because of the FATF’s position on regulating NFTs, we will not be regulating NFTs.”

Korea Financial Services Commission confirms that NFTs are not regulated
Korea Financial Services Commission confirms that NFTs are not regulated

The Korean Financial Regulator focused on the fact that the FATF viewed NFTs as “unique and not interchangeable”. which of course is the definition of not fungible, and you use as collectibles rather than cash to complete your decision.

Not everyone agrees with this.The South Korean newspaper Herald Corp reported that experts in Korea believe that NFT prices can be manipulated and used for money laundering, and because they are not virtual assets, issuers do not have to meet their anti-money laundering obligations.Koreans also don’t have to pay taxes on NFTs, although they’ll have to pay taxes on cryptocurrencies from January 2022.

Dunamu, the parent company of the Upbit crypto exchange, which has a near monopoly on crypto trading in the country, You will likely be happy with the news.

Dunamu and his new high profile partner Hybe are ready to enter the NFT realm along with collectibles based on popular K-pop group BTS Hybe is the entertainment company behind the group and recently announced it would buy a 2.5% stake in Dunamu, allegedly worth $ 423.1 million. Dunamu will acquire 5.6% of Hybe for $ 592.4 million.

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