South Korea will strengthen supervision of NFT and metaverse

The Financial Supervisory Service (FSS) said it will prepare countermeasures against factors causing consumer harm in the fast growing digital asset market. Earlier this month, the FSS said it will step up its screening of companies' initial public offerings (IPOs) in emerging markets such as NFTs and the metaverse.

Last year, South Korea imposed stringent new mandates for local digital asset businesses that led to the closure of many exchanges. Some decentralized finance NFT projects are still able to raise investment without meeting regulatory requirements. Some investors have stumbled upon a South Korean NFT project called CatSle, a type of scam in which developers abandon projects after receiving funds, local media reported. The FSS is among the government agencies working on new laws to institutionalize digital assets.

by Alessandro Crea Thursday 17 February 2022 17:00