South Korea has made rules about which kinds of digital assets will be considered securities and must follow the laws that apply to them. A news release from the Financial Services Commission (FSC) says that digital assets that meet the requirements of the Capital Markets Act will be regulated as securities.
According to this new guideline, a security is an investment where the buyer has no further obligations to the seller. In addition, the FSC gave examples of digital assets that are likely to be considered securities. The FSC states that this may involve tokens that give investors a stake in company operations, rights to payouts or leftover assets, or the ability to share company profits with investors.
Read about: South Korea’s Crypto-Tracking System to Fight Money Laundering
The FSC says it is up to token issuers and brokers like crypto exchanges to decide whether a particular cryptocurrency should be considered a security. The governing body also noted that evaluations would be made on specific instances. The financial authority also said that the new rules are a step toward issuing and giving out security tokens in the country in the future.
South Korea’s participation in the crypto ecosystem is helping a lot of different industries grow and thrive. On January 19, the city of Busan, which is in South Korea, said it would start a decentralized digital commodities exchange. Officials from the government have said that activities on the platform will begin this year.
