The Financial Services Committee (FSC) in South Korea reaffirmed in a public statement on Nov. 5 that nonfungible tokens (NFT) are not virtual assets, and volition not be regulated.

The confirmation of the conclusion to go along NFTs unregulated came after a review of the Financial Action Job Forcefulness'south (FATF) updated guidelines. The October 28 guidance report from FATF states that "NFT, or crypto-collectibles, depending on their characteristics are generally not considered to be [Virtual Assets]."

On November v, an official from a branch of the FSC said in a statement to reporters:

"Due to the FATF position on NFT regulation, we will non issue regulations for NFTs."

Korea's fiscal regulator focused on the fact that FATF considered NFTs to exist "unique, rather than interchangeable," — which is of course the definition of nonfungible — and are used as collector items instead of equally a means of payment to finalize their decision.

Not everyone approves. S Korean paper Herald Corp reported that experts in Korea believe that NFT prices tin can be manipulated and used for money laundering and since they are not considered to be virtual assets, issuers volition not be required to comply with anti-money laundering obligations. Koreans will also not be required to pay taxes on NFTs fifty-fifty though they will need to pay taxes on cryptocurrencies starting in January 2022.

Related: South Korean pension fund to invest in Bitcoin ETF: Report

Dunamu, the parent company of Upbit crypto exchange — which has a near-monopoly on crypto trading in the country — will likely exist pleased with the news.

Dunamu and its loftier-profile new partner, Hybe, are set to enter the NFT loonshit together with collectibles based on the wildly popular BTS K-popular grouping. Hybe is the entertainment group behind the grouping and recently announced that it would buy a two.5% pale in Dunamu, worth a reported $423.1 million. As part of the bargain, Dunamu volition acquire a 5.half dozen% pale in Hybe worth $592.4 1000000.