South Korea’s economic administration plans to issue guidance on the issuance and distribution of security tokens towards the end of 2022.
South Korea Prepares to Make Cryptocurrency Regulations
traditional stocks blockchain Financial regulators in South Korea, who want to include security tokens, which are based digital forms, within the scope of the country’s capital market rules, want to make these products official.
The country’s leading financial regulators, including the Financial Services Commission (FSC) and the Financial Supervision Service, met with prominent industry representatives, such as the Korean stock market (KRX), at a seminar Tuesday to discuss how to respond to the new rules. .
Based on the insights gained at the seminar, the FSC plans to issue guidelines on the issuance and issue of security tokens by the end of 2022.
The FSC then plans to change the country’s current electronic securities and capital market regulatory frameworks to include security tokens.
Market turmoil earlier this year bitcoin and other cryptocurrencies South Korea is accelerating its new plans to regulate the digital asset sector after lowering its prices and shutting down some of the industry’s big players.
While the FSC promises to accelerate new regulations for the crypto sector, anti-money laundering experts are also scrutinizing crypto platforms operating in the country.
The Korean Economic Institute, which made a comprehensive analysis of the financial sector in the country, warned that the cryptocurrency industry poses a major threat to South Korea’s financial stability.
In the summary of Tuesday’s seminar, it was stated that the current capital markets and electronic securities systems in South Korea do not support blockchain technology, and that it is necessary to include the issuance and distribution of security tokens in these frameworks to protect investors and financial stability.
*Not investment advice.
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