Fungible virtual assets are digital items where each unit is identical and interchangeable with any other unit of the same asset. For example, one Bitcoin holds the same value and properties as any other Bitcoin. These assets are commonly used as currencies or transferable representations of value within digital ecosystems. Their fungibility facilitates seamless transactions and liquidity in various markets.
Context
The concept of fungible virtual assets is central to understanding the operational mechanics of most cryptocurrencies and stablecoins. News often contrasts these with non-fungible tokens (NFTs), highlighting their distinct economic roles. Regulatory bodies frequently classify fungible virtual assets to determine appropriate oversight and taxation frameworks.
The SFC's new framework permits licensed platforms to leverage global liquidity pools and broadens product access, signaling a strategic pivot to market expansion.
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