South Korea’s top financial regulator the Financial Services Commission (FSC) said Wednesday that virtual assets or cryptocurrencies should not be termed “digital assets,” local news agency News1 reported, citing FSC documents.

The FSC presented its conclusion to the country’s unicameral legislature, the National Assembly, in a review of proposals for the upcoming Digital Asset Act that targets crypto investor protection.

The proposal for the Digital Asset Act recommended renaming virtual assets, which includes cryptocurrencies and non-fungible tokens (NFTs).

But the FSC the term “digital asset” is an umbrella term encompassing virtual assets (cryptocurrencies) and central bank digital currency (CBDC), in line with the subcategorization used in the U.S. executive order that the Biden administration issued in March 2022.

The FSC also held off from defining NFTs as a part of virtual assets under the term “digital assets,” as the regulatory body says the proposal is missing a clear definition of NFTs.

(By DANNY PARK)