Reporting and Compliance Requirements
Entities that issue nfts must now register their transactions, with penalties for non-compliance.
Determining whether nfts qualify as securities or virtual assets will involve consulting South Korea's 'Guidelines on Token Securities' provided by the Financial Services Commission. This assessment considers the type of content held by investors, with securities laws applying if the content is considered a security, regardless of its format or technology.
The Financial Services Commission (FSC) also clarified that nfts will be evaluated individually based on factors such as their exchange potential, mass production, splitting potential, and usability in transactions.
Failure to comply with these requirements can lead to criminal sanctions and the FSC encourages companies that are unsure of the status of their nfts to seek guidance.
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
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