South Korea Confirms NFT Will Not Be Regulated

The Financial Services Commission (FSC) of South Korea issued a public statement today, affirming that NFT is not a virtual asset and will not be regulated.

The move comes after reviewing the Financial Action Task Force’s (FATF) updated guidelines which state that “Often times, NFTs or crypto collectibles are not considered virtual assets, depending on their characteristics.”

On November 5, an official from a branch of the FSC said in a statement:

“Due to the position of the FATF on NFT regulation, we will not issue any regulation in this area.”

The FSC focuses on the fact that the FATF views the NFT as “unique and not interchangeable” and is used as collectibles rather than currency.

Not everyone supports this view. Experts in South Korea believe NFT prices can be manipulated and used for money laundering, reports the Herald Corp.

South Koreans also don’t have to pay taxes on the NFT, although they will 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 – will likely be pleased with the news.

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Annie

According to Cointelegraph

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