South Korea to treat certain NFTs as regular crypto

Jun 10, 2024

South Korea's top financial regulator issued new guidelines aimed at non-fungible tokens on Monday to provide regulatory clarity on NFTs, according to Yonhap news agency.

The new guidelines reportedly stated that the Financial Services Commission (FSC) will regulate certain NFTs as regular cryptocurrencies if they are deemed to no longer possess the unique qualities that distinguish them from cryptocurrencies.

The FSC may classify an NFT as crypto in a regulatory context if it is mass-produced, fairly exchangeable, capable of being fractionalized or being used for payments for goods and services, Yonhap reported, citing the guidelines.

On the other hand, digital tokens that are not transferable and have small to no economic value would be classified as regular NFTs. An example of such would be an NFT proof of transaction or an NFT ticket for a concert.

This article is for informational purposes only. It is not offered or intended to be used as investment or other advice.

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