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Korea Insists it Will not Regulate NFTs

The Korean Financial Services Commission (FSC) has assured the Korean crypto space that it would not regulate Nonfungible Tokens as they aren’t the same as virtual assets.

The public statement was released in line with the aftermath of the Financial Action Task Force’s (FATF) updated guidelines review released on October 28. FATF rule states that “NFT, or crypto-collectables, depending on their characteristics are generally not considered to be [Virtual Assets].”

Subsequently, in an interview with reporters, one of the branch officials of the FSC said, “Due to the FATF position on NFT regulation, we will not issue regulations for NFTs.”

The statement served as a pointer for FSC’s decision to exclude NFT from regulatory activities. The fact that NFT can not be interchanged and is unique is an advantage to digital art. Nonfungibles can also be collector items. All of these strengths are what the FSC is focusing on.

However, not everyone sees NFT as the perfect project. Herald Corp, a popular South Korean newspaper, believes that NFT can be an instrument for money laundering.

The prices can be tweaked, especially since they aren’t categorized as virtual assets. Issuers will be given the grace to bypass anti-money laundering phases. Taxes will also be bypassed with NFTs as all cryptocurrencies come with taxes by January 2022

NFT bypassing regulations are the types of news that will please Dunamu, a big-shot crypto platform in Korea and parent company of Upbit crypto exchange. The Monopolistic crypto company and its partner Hybe plan to enter Korea’s NFT market via a popular BTS K-pop group.

Hybe is an entertainment giant planning to buy at least a 2.5% stake in Dunamu. The deal is worth $423.1 million. On the other hand, Dunamu will possess a 5.6% stake in Hype, around $592.4 million.

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