As per new law, a particular type of NFT issuers will be required to register as virtual asset operators in South Korea.
South Korea, a key market for cryptocurrency companies, has stringent regulations that have limited foreign competition and allowed local firms to dominate. In recent years, only a handful of crypto companies have been permitted to provide services linking cryptocurrencies with fiat currency.
On 10 June 2024, A new report by the News1 website stated that the Korean Virtual Asset User Protection Act will require companies issuing NFTs that qualify as virtual assets to register as virtual asset operators. This applies to NFTs with characteristics such as large-scale issuance, divisibility, and use as a payment method.
This new rule will come into effect on 19 July 2024 & surely it will put pressure on those crypto NFT issuers who were issuing NFTs as an alternative digital asset investment or intentionally introduced NFTs in investment or payment related services.
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After the popularity of NFTs in the crypto sector, many new crypto projects emerged with the concept of NFTs investment along with cryptocurrencies and also introduced multiple features corresponding to every different NFT item. Probably the South Korean regulators are trying to prohibit those actors who are using the NFTs concept in the crypto sector for investment-like activities.
Now it will be interesting to see how the NFTs-focused crypto projects & entrepreneurs will react to this new rule.
Crypto-focused survey in South Korea
In April of this year, a new survey was published by the Korea Women’s Policy Institute and they noted that 90% of people in South Korea were worried about the future returns for their pension funds, as the population of the country decreases.
A survey found that 52% of people were investing in stocks, bonds, funds, and cryptocurrencies. Most of them believe these risky investments were more profitable than government pension funds or bonds.
Currently, 10% of the population of South Korea invests in cryptocurrencies and the government agencies in this country remain always active in bringing new rules & laws for this sector.
Read also: “Bitbns” crypto exchange is next Indian FTX, a Crypto influencer says
South Korea introduces new laws for Crypto NFT issuers
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