FSC: NFTs as Virtual Assets: When Mass-produced & Widely Traded
CryptoNewsTerminal Staff10 Jun, 2024
FSC: NFTs as Virtual Assets: When Mass-produced & Widely Traded
According to Yonhap News, the Financial Services Commission (FSC) has released its "NFT Virtual Asset Judgment Guideline" on May 10th, declaring that "if NFTs are structured but are essentially virtual assets, the 'Virtual Asset User Protection Act' will be applicable." Criteria for NFTs as Virtual Assets The following conditions classify NFTs as virtual assets: - Extensive or Large-scale Issuance: NFTs distributed in high volumes or series, leading to significant interchangeability. - Divisibility: NFTs may be divisible, diminishing their uniqueness. - Means of Payment: When NFTs can be used as a direct or indirect form of payment for specific goods or services. - Exchange or Linkage: NFTs that can be exchanged for other virtual assets or linked to payments for goods/services. This announcement provides clarity on the regulatory treatment of NFTs in South Korea and reinforces the importance of considering their underlying characteristics when determining their status as virtual assets or not.
