The popularity of NFTs is increasing day by day. With the widespread use of NFTs, it has come to the fore whether there will be any regulation in this area.
In this context, the first news about the regulation of NFTs came from South Korea. South Korea’s Financial Services Commission (FSC) said in a statement that it does not view and will not regulate NFTs as virtual assets.
The Financial Action Task Force (FATF) released its updated guidance on October 28. Here, “NFTs are not virtual assets and do not fall within the regulatory framework for crypto as long as they are used as collections rather than payments or investments.” it was said.
It is noteworthy that South Korea made its statement on NFT regulation shortly after the FATF published its updated guidance.
An official from the FSC said in a press release, “Due to FATF’s regulation on NFTsHe also stated that South Korea will not make regulations in this area.
After this decision of South Korea, some experts in Korea stated that the decision was of critical importance rather than the lack of regulation.
Because experts expressed their concern that NFT prices could be manipulated and therefore used for money laundering.
Experts also added that investors in South Korea will not have to pay any taxes on NFTs, even if they start paying taxes on cryptocurrencies from 2022.