South Korean regulator has published data on security of tokens
2023.02.06 08:22
South Korean regulator has published data on security of tokens
By Tiffany Smith
Budrigannews.com – The types of digital assets that will be considered and regulated as securities in South Korea have been outlined in guidelines.
The Financial Services Commission (FSC) made it clear in a press release that digital assets that meet the requirements outlined in the country’s Capital Markets Act will be treated as securities.
Securities are regarded by the law as financial investments in which investors are not required to make subsequent payments. Additionally, the FSC provided examples of digital assets that are most likely to be categorized as securities. The FSC says that this could be tokens that give investors a stake in the business, give them rights to dividends or residual assets, or make money for investors.
The country’s Capital Markets Law will govern cryptocurrencies that meet the definition of security tokens. In the meantime, new regulations will govern digital assets that do not meet the definition of securities.
Token issuers and brokers, like crypto exchanges, will look at the regulations to determine which cryptocurrencies will be considered securities, according to the FSC. Additionally, the regulator emphasized that each case will be evaluated separately.
The new guidance is also part of preparations for the legalization, distribution, and issuing of security tokens within the country, according to the financial regulator.
South Korea has been involved in the crypto ecosystem actively. The city of Busan announced on January 19 that it would establish a decentralized digital commodities exchange. Officials from the government said that the platform would start working this year.
In addition, the country’s Ministry of Justice intends to implement a crypto tracking system. The South Korean government announced on January 29 that it would implement a tracking system to combat money laundering and recover funds associated with criminal activities.
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