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Monday, June 10, 2024
HomeCryptoSouth Korea announces strict rules for digital assets

South Korea announces strict rules for digital assets

South Korea announced comprehensive regulations under the Virtual Asset User Protection Act, imposing strict rules on NFTs considered virtual assets.

Enaction Virtual Property User Protection Act of South Korea heralds a significant change in regulatory oversight of the cryptocurrency sector.

The act aims to impose strict rules on companies involved in issuing NFTs.

This law is specific targeting the NFT market with features such as widespread issuance, divisibility and utility as a means of payment. In addition, there is increased supervision and protection for this growing market.

Regulators will require businesses to report their activities and be closely monitored with the aim of promoting greater transparency and regulatory compliance for transactions involving digital assets. digital.

Detailed guidance on the Act

Enaction Virtual Property User Protection Act on July 19 will usher in a new era of regulatory clarity for the NFT sector in South Korea. The Financial Services Commission recently issued comprehensive guidance describing the criteria for classification NFTs are virtual assets.

Furthermore, the act requires operators issuing NFTs that meet virtual asset criteria to report their activities to regulators, ensuring compliance with the regulatory framework.

To explain this, authorities say that NFTs exhibit characteristics of securities or serve as a means of payment, so they will be monitored by regulatory agencies.

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Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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