BTS, a K-pop boy band, is joining the NFT frenzy through a partnership between its management company, Hybe, and Dunamu, the firm behind leading South Korean crypto exchange Upbit. A report unveiled this news earlier today, noting that the collaboration will see the two companies launch an NFT business. Reportedly, this business will see the firms sell BTS-related NFTs.
According to the report, the NFTs will comprise the band’s digital photo cards, which feature moving images and sounds. As part of the partnership with Dunamu, Hybe will also acquire a 2.5% stake in the crypto exchange operator. This deal will see Hybe part with $422 million, as well as 2.3 million shares worth $590 million.
Neither Hybe nor Dunamu disclosed when they plan to drop the NFTs. However, Hybe divulged that the NFT series would be available for collection, exchange, and display on its online fan community.
Commenting on this partnership, Hybe’s Chairman, Bang Si-hyuk, said,
We are working with Dunamu to create a way to expand the fan experience. We will bring together the capabilities both companies have built up so far to introduce a new and exciting innovation to the global music and fintech industries.
With this deal, BTS has become the latest group in the music industry to join the lucrative NFT space, which has attracted other artists like Snoop Dogg, Lindsay Lohan, and Paris Hilton, to name a few.
South Korea will not regulate NFTs
This news comes after South Korea’s Financial Services Commission (FSC) said NFTs are not virtual assets. As such, they are not subject to regulation. The authority disclosed this news through a public statement today, saying it made this decision based on the updated guidelines of the Financial Action Task Force’s (FATF). Published on October 28, the guidance form claims NFTs are virtual assets.
Reportedly, the agency also considered the fact that NFTs have different traits compared to cryptocurrencies. For instance, they are unique, collector items as opposed to cryptos, which are payment means.
However, the FSC’s decision does not sit well with everyone in the country. Allegedly, some experts believe NFTs should be subject to regulation, seeing as their prices are susceptible to manipulation. According to the experts, criminals can use NFTs for laundering money, seeing as they will not have to comply with money laundering.
