Under the new guidance, some NFTs will be regulated like regular cryptocurrencies if the agency determines that they do not have the unique qualities that make collectible tokens different from regular cryptocurrencies. Specifically, the FSC may classify an NFT as a cryptocurrency if the tokens are mass issued, have multiple exchange capabilities, can be fragmented, and if they can be used to pay for goods and services.
If collectible tokens are non-transferable and have little economic value, they will be categorized as NFTs. As an example, FSC cited a concert ticket in the form of an NFT, as well as a proof of transaction in the form of an NFT. An FSC representative explained that the collection, which includes around a million NFTs, can be sold and used as a cryptocurrency.
The regulator will make distinctions by separately considering the features of each token. There will be no single standard that will determine whether an NFT is a cryptocurrency, the FSC representative noted. The agency also suggests that collectible tokens can be classified as a security if they have similar characteristics specified in the country’s Capital Markets Law.
In April, South Korean authorities tightened requirements for the listing of new altcoins on centralized cryptocurrency exchanges operating in the country. Earlier, South Korea launched an intelligent system for tracking transactions with cryptocurrencies, which should identify tax evaders.
Source: Bits
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