South Korea will implement a virtual asset user protection law, which will bring strict regulation to the NFT market

According to ChainCatcher news and TokenPost reports, South Korea is set to implement a virtual asset user protection law, introducing a new strict regulatory framework for the digital asset market to enhance market transparency and security. The law specifically focuses on the regulation of NFTs, requiring companies that issue NFTs considered virtual assets to comply with stringent assessment and reporting standards.

The Financial Services Commission has released detailed guidelines that clarify the classification criteria for NFTs as virtual assets, including parameters such as issuance scale, divisibility, and trading utility. Operators must ensure that their business activities comply with regulatory requirements to avoid criminal penalties. The new regulations will take effect on July 19, marking the beginning of South Korea's era of regulation for digital assets like NFTs.