South Korea introduces guidelines for NFTs as virtual assets

South Korea introduces guidelines for NFTs as virtual assets

Reporting and Compliance Requirements

Entities issuing NFTs are now required to register their operations, with sanctions for non-compliance.

Determining whether NFTs qualify as securities or virtual assets will involve consulting South Korea’s ‘Token Securities Guidelines’ provided by the Financial Services Commission. This assessment considers the type of content held by investors, applying securities legislation if the content is considered a security, regardless of format or technology.

The Financial Services Commission (FSC) has also clarified that NFTs will be evaluated individually based on factors such as their exchange potential, mass production, splitting potential and usability in transactions.

Failure to comply with these requirements can result in criminal penalties and the FSC encourages companies that are unsure about the status of their NFTs to seek guidance.

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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to thoroughly research any product before making any type of investment.

Blockchain enthusiast and long-time gamer.

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