NFTs have potential to work within real estate transactions due to their irreplaceable nature.
In the US use of NFTs in real estate transactions is increasing. For example, NFTs have been used for rental property auctions and real estate mortgage transactions.
Under current Korean law, however, the use of NFTs face potential restriction if they can be considered as securities under the Capital Markets Act.
If the NFT is determined to be a security, then the issuer would face restrictions such as registration as a security issuer, licensing requirements as a securities exchange, and securities registration and acceptance limitation, etc.).
If the NFT is determined as a security, the use of the innovative financial service exception process to avoid regulatory restrictions would be required.
