South Korea Financial Services Commission (FSC) reiterated its view that NFTs generally do not fall under the definition of virtual assets and said they will not be regulated as such.
The Korean Herald quote referred to an unnamed Financial Intelligence Unit (FIU) official and said, “According to the basic position expressed by the International Anti-Money Laundering Organization (FATF), NFTs are not regulated.” The FIU is the FSC’s anti-money laundering division, and the Financial Action Task Force (FATF) is an international government body that creates financial regulations, including crypto. However, the authority has left the door open to NFT regulation in some cases, as we have already cited and as stated in the definition of FATF.
FATF’s guide to cryptoassets was published recently. The guide states that NFTs are not considered virtual assets and will not fall within the framework of crypto-asset regulation as long as they are used as a collection rather than payment or investment. On the other hand, it was noted that countries should consider on a case-by-case basis whether NFTs are within the scope of FATF standards. The FIU official made the following statements on the subject:
“A huge sum would have to be printed before it could be used as a payment method, but there’s hardly any reason to make it an NFT that values scarcity. ”
Despite regulatory uncertainty in the field, NFT continues to attract celebrities. Popular k-pop group BTS also announced their entry into the industry recently.
