Hong Kong

By FintechNews staff

While the markets have become accustomed to regulators investigating and fining crypto trading platforms, NFTs and the Metaverse have become the latest area of regulatory focus.

An upward trend in illegal activity and concerns over the use of NFTs and the Metaverse to fund illegal activity and facilitate money laundering have drawn government attention.

Hong Kong

A Hong Kong government-run internet security watchdog has listed risks associated with non-fungible tokens (NFTs) and the metaverse as a top “must watch” security threat this year, while both trends continue to thrive in the city. The Hong Kong Computer Emergency Response Team Coordination Centre said in a statement last week that criminals may steal sensitive user information as the value of cryptocurrencies grows.

The cybersecurity agency’s concern comes as Hong Kong is experiencing a boom in NFT and metaverse industries.

South Korea

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. 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. 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.

China’s central bank has also been sending out warnings over NFTs and the Metaverse that suggest action is imminent.

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