"NFT Entered by Large Corporations, Virtual-Physical Bridge... Possibility of Financial Regulation (Comprehensive)"

NFT Experts Gather for 'NFT ART 101 Conference'
"Return to Basics to Reassess Blockchain Utility"

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] It is forecasted that non-fungible tokens (NFTs) will serve as a bridge between virtual assets and the real economy. NFTs are considered investment contract securities and have payment functions related to virtual assets, raising the possibility of regulatory oversight by financial authorities.

Yuri Lee, Vice President of GDAC, stated on the 17th at the 'NFT ART 101' conference held at the Dragon City Grand Ballroom in Yongsan-gu, Seoul, co-hosted by Art Token, Asia Economy, Ground X, Soongsil University, and law firm Daeryuk Aju, "At a time when domestic and international interest and expectations for the digital finance industry are high, we must return to basics and reconsider the intrinsic value and utility of digital assets and blockchain."

Vice President Lee pointed out that as the virtual asset market, which uses NFTs as a means of transaction, rapidly expands, participation from institutional financial companies is also becoming active. He emphasized, "The market capitalization of digital assets was 55 trillion won as of the end of last year, and the number of members of virtual asset exchanges has reached 15 million, indicating that many citizens are trading. Domestic commercial banks and securities firms are also engaging in custody services and partnerships for digital financial services."

Lee Yuri, Vice President of PeerTech (Gidac), is speaking as a speaker at the 'NFT ART 101' conference held on the morning of the 17th at the Dragon City Grand Ballroom in Yongsan-gu, Seoul. / Photo by PeerTech

Professor Youngmi Ko of Soongsil University’s College of Law spoke about the financial legal issues surrounding NFTs. Professor Ko said, "It is half true and half false that there are no regulations related to NFTs," clarifying that "there are no regulations specifically tailored to NFTs."

Professor Ko explained, "Whether an NFT is considered a virtual asset is difficult to determine uniformly and should be decided based on the form of NFT issuance." According to her explanation, NFTs generally regarded as investment or payment instruments are considered virtual assets. She added, "The Act on Reporting and Using Specified Financial Transaction Information defines virtual assets as 'electronic certificates that have economic value and can be electronically traded or transferred,' and according to this, NFTs are virtual assets." From the purpose of this law, NFTs as payment instruments may be subject to regulations aimed at preventing money laundering and financing of criminal activities.

Hwang Ikchan, CEO of NFT exchange VIVLOCK, explained, "Last year, a rapid NFT boom occurred, and large corporations jumped into production. Certain works were auctioned for tens of millions of dollars, and the emergence of P2E (play-to-earn) games drove the expansion of the NFT market." He predicted, "The NFT Web 3.0 era will come, providing infrastructure for efficient value transfer and forming a platform and mutually trustworthy and responsible network."

Comments were also made on the impact of NFTs across industries. Wonsang Kim, Head of Business Strategy Planning at Ground X, said, "If the web opened the information age through standardization of information exchange via the internet, NFTs, which have no fixed face value, will present a standard for value exchange and open the digital asset era." He added, "Through the emergence and commercialization of NFTs, digital transformation will occur, and in the long term, structural changes in industries will be experienced."

Meanwhile, the event discussed the integration and revitalization of NFTs with culture and arts. In the morning, a presentation titled 'NFT Market, Present and Future' was held, moderated by lawyer Jaekyung Lee. In the afternoon, NFT artists discussed the future of NFT artworks under the theme 'NFT Art and Artists.' Explanations from NFT platform representatives about the value of 'minting,' the act of issuing NFTs, and minting methods also followed.