Digital assets and associated technologies such as the metaverse have been added to the list of sectors monitored by one of South Korea’s financial watchdogs. This year will be scrutinized more closely by the watchdog. The Financial Supervisory Service (FSS) is concerned about protecting consumers at a time when the country’s digital asset industry is booming.
The regulator declared that it would beef up its oversight of NFTs and the metaverse.
The agency declared in its annual work plan revealed this week that it will tighten its oversight of new trading assets, notably non-fungible tokens (NFTs), a sector whose rapid growth has become a source of concern for authorities.
It will also aim to improve its oversight of the metaverse, another quickly growing sector that has piqued the interest of some of the world’s most powerful corporations, including Meta and Microsoft. In its annual work plan, the FSS stated that it will create countermeasures against issues that harm consumers in this fast increasing sector.
In recent years, NFTs have become increasingly popular in South Korea.
The latest development comes after the SEC announced earlier this month that it would increase its scrutiny of IPOs for enterprises in emerging markets, including NFTs and the metaverse.
In recent years, NFTs have become increasingly popular in South Korea. Despite this, the South Korean government has been staunch in its opposition to them being recognized as financial assets.
The Financial Services Commission (FSC) announced later last year that NFTs do not fall under the category of virtual assets and will not be regulated in the same way. NFTs, according to the FSC, are categorized as collectibles rather than payments or investments.
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