1 year ago
South Korea’s Financial Services Commission (FSC) issued guidance connected the regularisation of information tokens and their issuance connected Feb. 6. According to the regulator, integer assets that acceptable the characteristics of securities arsenic defined successful the Capital Markets Act, volition beryllium regulated arsenic securities successful the country.
As per the FSC, cryptocurrencies that connection a involvement successful concern operations, and springiness holders rights to dividends, residual assets, oregon concern profits, volition autumn nether the class of securities nether the Capital Markets Act.
The securities regulations entail nationalist disclosure requirements and prohibit unfair commercialized practices to support the rights of investors.
Cryptocurrencies that bash not autumn into the class of securities, however, volition beryllium regulated by the upcoming Framework Act connected Digital Assets, the FSC said. Digital assets that bash not person an issuer, similar Bitcoin (BTC) and Ethereum (ETH), volition not beryllium considered securities, the FSC said.
The FSC volition besides licence Security Token Offerings (STOs) by making amendments to its Electronic Securities Act.
However, the FSC stated that token issuers and brokers, similar crypto exchanges, volition beryllium required to measure which cryptocurrencies are securities connected a case-by-case basis. This is akin to however companies person to self-determine whether they are issuing securities and travel the applicable regulations.
The station South Korea issues guidance connected information tokens, STOs appeared archetypal connected CryptoSlate.
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