South Korean Regulator Rules NFTs Are Not Subject to Crypto Law
South Korean financial regulators have said NFTs are not subject to the same rules as cryptoassets, a ruling that may buoy token issuers and blockchain gaming firms.
Per News1, the Financial Services Commission (FSC), the nation’s top regulator, stated that “following CBDCs,” NFTs will also be “excluded from” its “lists of virtual assets.”
The FSC has previously created separate regulations for CBDCs. Lawmakers have also created legislation that distinguishes digital fiat from tokens like Bitcoin (BTC).
The Virtual Asset User Protection Act defines cryptoassets as “electronic tokens that have economic value and can be traded or transferred electronically.”
Some claimed that this phrasing does not make it clear if NFTs can legally be considered as cryptoassets.
In the past, gaming regulators refused to issue licenses to video games that make use of NFTs.
Critics claim this has effectively blocked the progress of blockchain gaming in the nation.
However, the FSC claimed that as NFTs are “unique and irreplaceable,” they pose a “limited” risk to the financial system.
The regulator ruled that most NFTS are “mainly traded for collection purposes,” as opposed to crypto – which it feels is mainly used as a speculative tool.
Read more on cryptonews.com
