Reporting requirements and compliance obligations
The registration of NFT issuing entities will be enforced, and sanctions may apply if they do not comply.
How to determine if NFTs qualify for securities classification virtual assets will involve consultation of South Korea’s ‘Token Securities Guidelines’ provided by the Financial Services Commission. Investors’ content will be considered in this assessment. Securities legislation applies if content is classified as a financial product, regardless of technology or format.
Financial Services Commission has clarified the fact that NFTs are assessed on an individual basis based upon factors like their potential exchange value, production volume, ability to be divided, and suitability for transactions.
If these obligations are not met, businesses may be subject to criminal sanctions. FSC also encourages those who have questions about the status of their NFTs to ask for guidance.
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Source: nftplazas.com