Recently, cryptocurrencies have been under the scrutiny of regulators from many countries. Authorities are trying to identify and classify these assets and work to prevent citizens from being victimized. Such a step has come, most recently, from South Korea. Here are the details…
New guide for cryptocurrencies from South Korea
South Korea has created a guideline that outlines what types of crypto assets will be considered securities and regulated in the country. In a press release, the Financial Services Commission (FSC) emphasized that crypto assets that meet the specifications set out in the country’s Capital Markets Law will be considered securities. This law considers securities as financial investments for which investors are not required to make additional payments after their original investment. Additionally, the FSC provided examples of which cryptoassets would most likely be classified as securities.
According to the FSC, this may include tokens that provide a stake in business operations, grant holders rights to dividends or residual assets, or provide investors with business-generated profits. Cryptocurrencies that meet the definitions of security tokens will be regulated under the country’s Capital Markets Law. Meanwhile, cryptoassets that do not meet the specifications of securities will be subject to further regulations to come.
Crypto organizations also have a job
According to the FSC, token issuers and brokers, such as cryptocurrency exchanges, will be tasked with making assessments about which crypto to classify as a security according to regulations. The regulator also noted that the assessment will be on a case-by-case basis. The financial regulator also noted that the new guidance is part of preparations to legalize the issuance and distribution of security tokens within the country.
South Korea is actively participating in the crypto ecosystem with the continuous development of various sectors within the country. As we reported as Kriptokoin.com, on January 19, the city of Busan announced its plans to establish a decentralized crypto commodity exchange. Government officials noted that the platform will begin operations this year. Apart from that, the country’s Ministry of Justice is also planning to set up a tracking system for crypto. On January 29, the South Korean government said it would implement a tracking system aimed at combating money laundering efforts and recovering funds linked to criminal activities.
The country’s metaverse initiative is in action
On the other hand, there are many technological events in South Korea. The city of Seoul has launched the Metaverse Seoul project, which will allow residents of the South Korean capital to access city services in a virtual environment. At a press briefing on January 16, Seoul Mayor Oh Se-hoon announced the launch of the first phase of Metaverse Seoul, following beta testing of the project. According to the mayor, the online environment will become the capital’s “a place of communication for its citizens,” allowing them to virtually visit Seoul’s many attractions, access official documents, file specific complaints and get answers to their municipal tax filing questions.
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