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- The FSC in South Korea reinstated that NFT won’t be regulated as it doesn’t perceive it as “digital assets”
- The decision comes after the FATF’s updated guidelines
- The popular news agency, Herald corp, reports otherwise in the decision.
- The Dunamu trading app, an almost monopoly, was pleased with the Decision.
On November 5, a Financial Services Commission (FSC) official issued a statement that, in accordance with the Financial Action Task Force’s (FATF) position on the NFTs, the FSC will not issue any kind of regulation on the NFT markets. The statements come across after a week after the FATF updated it’s guidelines.
On October 28, the guidance report from the FATF’s report stated that NFT or other crypto collectibles, according to their characteristics, are normally not considered as “Virtual Assets”.
The confirmation to keep NFTs unregulated comes after a thorough review of the Task Force.
The Korean regulators stressed on the fact that NFTs on the contrary are focussed to be unique & Interchangeable and provide a set of collections like painting or stamps rather than using it as a medium of Exchange like various currencies & come to a conclusion to not regulate the NFT markets.
However not everyone seems to be welcoming of the decision as the South Korean news major, The Herald Corp reports, experts have analysed that the prices of major NFTs can be manipulated and can be used for money laundering crimes. Since the FSC & FATF have refused to consider NFTs as digital assets, people who transact with NFTs need not comply with anti money laundering obligations and furthermore the local citizens of the region need not pay taxes on NFTs.
Although this does not mean that the growing market will not face anymore problems in regards to regulations, The NFTs can still be perceived as securities & can be regulated under the different body of Financial Supervisory Service (FSS) in South Korea. Though with the definitions given by the FATF’s report it is believed that NFTs could also escape from the regulations imposed under the FSS. Concerns grow around the security tokens that provide royalties to people and could be acknowledged as a Security.
While the decision stands, companies like Dunamu, around the sector would be delighted with the news and current stance of the regulators. Dunamu is almost a monopoly when it comes to trading cryptos in the country.
Duname & its high profile partner Hybe are now ready to enter into the NFT markets with tokens based on one of the most popular groups of all times, the BTS K-POP Group. In a recent event, as a part of the deal Hybe announced that it would buy a 2.5% stake worth $423 Million, where Dunamu will acquire a 5.6% Stake worth $592.4 Million in Hybe. Both the companies are expected to work together to provide tokens of exclusivity to all the BTS fans worldwide.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
