South Korea's Financial Services Commission (FSC) has introduced new guidelines categorising certain NFTs as virtual assets, similar to cryptocurrencies.

The regulations target mass-produced, divisible NFTs that can function as payment methods, aligning them with existing cryptocurrency laws.

By adopting a case-by-case approach, the FSC aims to provide clarity in the digital asset sector while acknowledging the diverse functionalities of NFTs.

These measures precede the implementation of the Virtual Asset User Protection Act, slated for July 19, 2024, which seeks to enhance security measures and protect users in South Korea's crypto market.