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<ul><li>South Korea&#39;s new law requires large-scale or divisible NFT issuers to register as virtual asset operators.</li><li>General content NFTs are excluded, but certain NFTs are classified as virtual assets based on issuance and payment use.</li><li>New guidelines assess if NFTs are securities first, then if they qualify as virtual assets, effective July 19.</li></ul>Starting July 19, South Korea will enforce the Korean Virtual Asset User Protection Act, which introduces new regulations for companies issuing NFTs, per Wu Blockchain <a href="https://x.com/WuBlockchain/status/1800034026742563281" rel="noopener noreferrer nofollow">post</a>. These businesses will be required to register as virtual asset operators if their NFTs exhibit characteristics such as large-scale issuance, divisibility, or use as a means of payment.Under the Virtual Asset User Protection Act, general NFTs intended for content collection will be excluded from the definition of virtual assets. The <a href="https://www.fscmauritius.org/en" rel="noopener noreferrer nofollow">Financial Services Commission</a> (FSC) clarified these guidelines on June 10. The distinction hinges on whether an NFT can be categorized as a security or a virtual asset, based on its characteristics.The <a href="https://cryptotale.org/xrp-advocate-criticizes-fsc-chairs-inaction-on-gensler-subpoena/" rel="noopener noreferrer nofollow">FSC</a> outlined specific criteria to determine when an NFT qualifies as a virtual asset. NFTs are considered virtual assets if they meet any of the following conditions: issued in large quantities, divisible in nature, usable as a direct or indirect payment method, or exchangeable for other virtual assets among unspecified persons. The guidelines prioritize examining whether NFTs meet the securities definition according to the Token Securities Guidelines established in February 2023. If the rights conferred by an NFT align with securities under the Capital Markets Act, then securities regulations will apply.<a href="https://cryptotale.org/south-koreas-new-law-to-regulate-nfts-as-virtual-assets-from-july-19/" rel="noopener noreferrer nofollow">Read more on CryptoTale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

South Korea's New Law to Regulate NFTs as Virtual Assets from July 19

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