South Korean authorities exempt NFTs from cryptocurrency regulation

NFTs are not regulated as virtual assets in Korea.

South Korea’s Financial Services Commission (FSC) confirmed that non-fungible tokens (NFTs) generally do not fall under the definition of virtual assets and are not regulated as such. This was reported by Korea Herald.

“According to the FATF’s original view, NFTs are not regulated,” said the FSC spokesperson to the publication.

On 28 October FATF released revised guidelines for the crypto industry. According to the document, NFTs do not fall under the FATF’s recommendations if they are used as collectibles rather than for payments and investments.

The FATF noted that local regulators should in each case consider whether to apply crypto rules to these assets.

“To use them as a means of payment, one would have to issue a very large amount, but there are practically no reasons to do so, as NFTs are valued for their rarity,” said an FSC official.

Earlier, South Korea authorities kept plans to introduce a capital gains tax on cryptocurrency transactions from 2022. Both ruling party parliamentarians and the opposition called for delaying it.

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