Regulator Korea Selatan tidak menganggap NFT sebagai aset digital
South Korea's FSC has confirmed that it does not intend to classify non-fungible tokens as virtual assets and create a separate set of rules for them.
According to representatives of the South Korean FSC, they came to this conclusion thanks to the FATF report for October 28, 2021. It said that NFT and other collectibles based on digital currencies should not be defined as virtual assets. Although the document also mentioned that the use of non-fungible tokens should be considered by local regulators on a case-by-case basis. Consequently, they are not subject to any regulation by the government financial departments.
An FSC official stated that it makes no sense for NFT market participants to use them as a means of payment since issuers of non-fungible tokens will have to generate a huge number of virtual items. But in this area, first of all, rarity is valued, and therefore no one benefits from such a use of these crypto-assets.
However, not everyone agrees with this opinion. Local cryptocurrency experts are convinced that the price of NFT can also be manipulated using these items for money laundering. And because they won't be defined as digital assets, issuers don't even need to comply with a specific set of anti-money laundering rules. In addition, their creators wouldn't be obliged to pay taxes on NFTs, still with the legislation coming into force in January 2022 related to taxes for digital currencies.
Some analysts even bluntly stated that the mother company of the local crypto exchange Upbit Dunamu, which is the monopoly of crypto trading in South Korea, will probably be very pleased with the news that there is no "financial responsibility" for the creation, purchase, and sale of non-fungible tokens. Especially considering that the company and its associate Hybe intend to join the NFT stage with items from the world-famous K-pop group BTS.
At the same time, Hybe announced the acquisition of a 2.5% stake in Dunamu for more than $423 million. Dunamu, in turn, will also buy a 5.6% stake in Hybe, worth $592 million.
Make history, trade and earn on OpenSea.
CoinShark is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. This article is for informational purposes, prepared on the basis of materials and information from open sources. Cryptocurrency is a high-risk asset, investments in it can lead to losses. Readers should do their own research before taking any action.