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South Korean Regulator Will Not Regulate NFTs

NFT

ihodl.com 05 November 2021 07:00, UTC
  
Reading time: ~2 m

South Korea's Financial Services Commission (FSC), the country's regulator, has said it does not intend to regulate non-fungible tokens (NFTs), Cointelegraph has reported.

According to the institution's statement, it has made the decision because it does not consider NFTs to be virtual assets.

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It must be noted that the FSC has decided not to regulate NFTs shortly after the Financial Action Task Force (FATF) published an updated version of its guidance. According to it, which was published last October 28, "NFT, or crypto-collectibles, depending on their characteristics are generally not considered to be [Virtual Assets]."

Based on this information, an FSC official has stated:

"Due to the FATF position on NFT regulation, we will not issue regulations for NFTs."

However, not everyone seems to share the FSC's position. Thus, South Korean newspaper Herald Corp has reported experts in Korea believe the prices of NFTs can be manipulated and used for money laundering and, as they are not considered virtual assets, issuers will not be required to comply with anti-money laundering obligations.


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