A South Korean financial watchdog announced it will strengthen monitoring of new trade assets, including non-fungible tokens (NFTs), in its annual work plan released on Monday.
Fast facts
- The Financial Supervisory Service (FSS) said it will prepare countermeasures against factors that cause damage to consumers in the rapidly growing digital assets market.
- Earlier this month, the FSS said it will heighten the verification of initial public offerings (IPOs) of businesses in emerging markets such as NFTs and the metaverse.
- Last year, South Korea enforced strict new mandates for local digital asset businesses which led to the closure of many exchanges.
- Some NFT projects in decentralized finance are still able to collect investments without meeting regulatory requirements.
- Investors of a South Korean NFT project named CatSle were rug-pulled — a type of scam where developers abandon projects after receiving funds, local media reported.
- The FSS is among the government agencies working on new laws to institutionalize digital assets.