South Korean regulator provides guidance on security tokens

South Korea established guidance that specifies which types of integer assets volition beryllium considered and regulated arsenic securities successful the country.

In a property release, the Financial Services Commission (FSC) highlighted that integer assets that acceptable the characteristics laid retired successful the country’s Capital Markets Act volition beryllium treated arsenic securities.

This instrumentality considers securities arsenic fiscal investments wherever investors are not required to marque further payments aft their archetypal investments. In addition, the FSC besides provided examples of which integer assets volition astir apt beryllium classified arsenic securities. According to the FSC, this whitethorn see tokens that supply a involvement successful concern operations, gives holders rights to dividends oregon residual assets oregon provides nett generated by the concern to the investors.

Cryptocurrencies that acceptable the descriptions of information tokens volition beryllium regulated nether the country's Capital Markets Law. Meanwhile, integer assets that bash not acceptable the characteristics of securities volition beryllium governed by other upcoming regulations.

According to the FSC, token issuers and brokers similar crypto exchanges volition beryllium tasked with making the evaluations connected which crypto volition beryllium classified arsenic securities based connected the regulations. The regulator besides pointed retired that the valuation volition beryllium connected a case-to-case basis.

The fiscal regulator besides noted that the caller guidance is portion of preparations for the legalization of the issuing and distributing of information tokens wrong the country.

Related: Seoul authorities opens city’s metaverse task to public

South Korea has been actively participating successful the crypto ecosystem, with assorted sectors wrong the state continuously developing. On Jan. 19, the metropolis of Busan revealed plans to establish a decentralized integer commodities exchange. Government officials noted that the level is acceptable to statesman its operations this year.

Apart from this, the country's Ministry of Justice besides plans to deploy a tracking strategy for crypto. On Jan. 29, the South Korean authorities said that it volition introduce a tracking system that aims to combat wealth laundering efforts and retrieve funds connected to transgression activities.