The Financial Services Commission of South Korea (FSC) has confirmed non-fungible tokens (NFTs) generally do not fall within the definition of virtual assets and must not regulated as such, The Korea Herald reports.
An FSC spokesman said:
“According to the initial view of the Financial Action Task Force on Money Laundering (FATF), NFTs are not regulated.”
On October 28, the FATF released a revised version of its guidelines for the crypto industry. According to the document, NFTs are not subject to the FATF’s guidelines if they are used as collectibles rather than for payments and investments.
The FATF noted that local regulators should, on a case-by-case basis, consider applying the rules for cryptos in relation to these assets.
An NFT official said:
“In order to use them as a means of payment, a very large amount has to be issued, but there is practically no reason to do so, since rarity is valued in the NFT.”