South Korea Takes Aim: NFTs Now Subject To Regulation
Summary
South Korea's FSC has introduced new regulations for NFTs, focusing on fungibility. NFTs functioning as payment will be treated like virtual assets, while unique, non-divisible NFTs may be exempt. NFT businesses must comply with the Specific Financial Information Act. Failure to do so may result in fines or criminal penalties. The FSC will provide consultation services to help businesses navigate the regulations. The NFT market in South Korea is expected to grow significantly, with a projected spend value increase from $938 million in 2022 to $4 billion by 2028. The number of NFT owners in South Korea is also expected to rise significantly.
