South Korea's Financial Services Commission (FSC) has issued a new guideline on Qualified Intellectual Property (NFTs), removing yet another uncertainty in the cryptocurrency space. According to the FSC's decision, NFTs that are mass-produced, easily tradable and can be used to purchase goods and services will qualify as ordinary cryptocurrency. In contrast, digital tokens that cannot be transferred and have little economic value will be considered regular NFTs. For example, a concert ticket that has been converted into an NFT will be considered a regular NFT.
An FSC official emphasized that a collection of one million NFTs can be traded and exchanged like other cryptocurrencies. The new regulations will take effect on July 19.
South Korea's cryptocurrency regulations aim to prevent irregularities in the market with the Virtual Asset User Protection Law. According to this law, cryptocurrency service providers will have to keep more than 80% of their deposits in cold wallets to protect users' money and will also be required to take out insurance.
