to cryptocurrencies South Korea, one of the countries that continues to work on regulation, has published a directive that defines which tokens are securities and how they will be regulated.
Expanding the definition of tokens that can be considered securities South Korean regulator Financial Services Commission (FSC)stated that digital assets that comply with the features specified in the Capital Market Law will be defined and evaluated as securities in the directive it has published.
To be more illustrative, the FSC also gave examples of which digital assets would most likely be classified as securities.
Accordingly, tokens that provide a stake in business activities, grant holders rights to dividends or residual assets, or provide investors with business-generated profits are considered securities.
The new guidance released by the FSC is pegged to the value of fiat currencies such as the US dollar and used for payments or as a medium of exchange. stablecoins He also stated that it would probably not fall under the definition of securities.
“On the other hand, digital assets corresponding to securities need to be issued and distributed in accordance with all securities regulations under the Capital Markets Law.
We will also support institutionalization by presenting amendments to the Electronic Securities Law and the Capital Markets Law to the National Assembly in the first half of 2023.”
It was stated that the rules set by the FSC are aimed at promoting innovation as well as ensuring consumer protection.
Experts are behind South Korea’s acceleration of regulation on cryptocurrencies Terra (Luna) It assesses the collapse of its network that took place in May.
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