According to a local media report, South Korea’s Financial Supervisory Service (FSS) Chairman, Lee Bok-hyun, is scheduled to meet with the United States Securities and Exchange Commission (SEC) Chairman, Gary Gensler, in May to deliberate on the classification of non-fungible tokens (NFTs) and the approval of spot Bitcoin exchange-traded funds (ETFs).
The meeting holds significance as South Korean and US financial authorities consider recognizing blockchain-based digital ownership by NFTs as a virtual asset.
South Korean Watchdog And US SEC To Tackle NFTs Classification
Non-fungible tokens, which provide unique certificates of authenticity for various digital assets such as images, videos, artwork, and real estate, have gained prominence in recent years in Asia. However, there is no clear legal definition for NFTs, leading to differing perspectives on whether they should be classified as technology, virtual assets, or securities.
According to the report, in Korea, NFTs were initially excluded from the scope of virtual assets in the Enforcement Decree of the Virtual Asset Act, effective in July, due to their alleged “predominantly collectible” nature and perceived low market risk.
However, as the prices of virtual assets, including Bitcoin, have surged, non-fungible tokens have increasingly become subject to speculation, prompting calls for their recognition as countable assets alongside BTC.
The meeting between the Financial Supervisory Service and the US SEC Chairman is expected to address this issue, with industry stakeholders emphasizing the need to establish a clear definition for non-fungible tokens.
Privacy Concerns And Business Costs Surface
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Author: Ronaldo Marquez
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