Mass-produced NFTs have now become a virtual asset in Korea.
This is what the Financial Services Commission (FSC) recently announced. New guidelines defining when non-fungible tokens (NFTs) can be classified as virtual assets; Aligning more closely with cryptocurrencies.
According to the guidelines, NFTs are Lack of features that distinguish it from virtual assets It is regulated as a cryptocurrency. This means that NFTs are: Produced in bulk, divisible, and can be used as a payment method It is classified as a virtual asset.
Meanwhile, NFTs If it is not used for economic value, has limited use (e.g. concert tickets in limited quantity), or is not tradable; It is classified as a general NFT.
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Jeon Yo-seop, head of the Financial Innovation Planning Department of the Financial Services Commission, explained this in an interview.
For example, if 1 million NFTs are issued, there is a possibility that they will be traded a lot and used for payments.
The FSC said it would evaluate each collection individually. There are no fixed rules for interpreting NFTs as cryptocurrencies.
Furthermore, the guidelines state: NFTs can be considered securities. Cases that exhibit characteristics specified in the Capital Markets Act of the Republic of Korea.
The FSC’s new guidelines therefore classify NFTs based on economic use, payability, and tradability.
In other news, a rule change in South Korea means that charities can now no longer accept cryptocurrencies as a form of donation.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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