Reporting and Compliance Requirements
Entities issuing NFTs are now required to register their operations, with sanctions for non-compliance.
Determining whether NFTs qualify as securities or virtual assets will involve consultation of South Korea’s ‘Token Securities Guidelines’ provided by the Financial Services Commission. This assessment considers the type of content held by investors, with securities legislation applying if the content is deemed a security, irrespective of format or technology.
The Financial Services Commission (FSC) also clarified that NFTs will be individually assessed based on factors such as their exchange potential, mass production, potential for division, and usability in transactions.
Non-compliance with these requirements can result in criminal penalties and the FSC encourages businesses unsure of their NFTs’ status to seek guidance.
Want more? Connect with NFT Plazas
Join the Weekly Newsletter
Join our Telegram
Follow us on Twitter
Like us on Facebook
Follow us on Instagram
*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
Blockchain enthusiast and lifelong gamer.
Credit: Source link
