South Korean regulators: NFTs and CBDCs will be excluded from the mandatory order on crypto interest

ChainCatcher news, the Financial Services Commission (FSC) of South Korea has issued a notice emphasizing that by July 2024, digital asset investors must earn interest when depositing funds into exchanges. Furthermore, the guidelines clearly state that non-fungible tokens (NFTs) and central bank digital currencies (CBDCs) are not subject to this law.

Additionally, according to local media reports, the Financial Services Commission of South Korea plans to release such legislative guidelines on December 10. Although NFTs are excluded, the regulatory body also pointed out that there may be exceptions. According to reports, even if tokens are classified as NFTs, if their function is as a means of payment and they are issued in large quantities, they may fall under the classification of virtual assets. In such cases, these assets may qualify for interest when deposited into exchanges.

In addition to classifying virtual assets, South Korean regulators have also established methods for handling user deposits by virtual asset operators. The notice emphasizes that exchanges must separate user deposits from their own assets and must entrust them to banks. Additionally, 80% of the funds must be kept in cold wallets.