If the agency finds that a non-fungible token (NFT) lacks the characteristics that distinguish it from a regular cryptocurrency, then the NFT will be subject to the same regulations as regular cryptocurrencies under the new guidelines. If NFT tokens are mass-issued, can be fragmented, have multiple exchange capabilities, and can be used to pay for goods and services, then the FSC may classify the NFT as a cryptocurrency.
No-Fee Tokens (NFTs) are collectible tokens that cannot be transferred and have minimal monetary worth. A concert ticket and proof of transaction both in NFT form were cited by FSC as examples. According to an FSC representative, the collection—which contains approximately one million NFTs—can be traded and utilized as a form of digital currency.
Differentiation will occur when the regulator evaluates the characteristics of each token independently. According to the FSC representative, there isn’t going to be a universal test for identifying NFTs as cryptocurrencies. According to the agency, collectible tokens that meet the criteria laid out in the country’s Capital Markets Law can be considered securities.
Officials in South Korea made it more difficult in April to list new altcoins on the country’s centralized cryptocurrency exchanges. To help find people who are trying to avoid paying their fair share of taxes, South Korea has just launched an intelligent system to monitor cryptocurrency transactions.