The Financial Services Commission (FSC) stated in a news release that digital assets that meet the criteria outlined in the nation’s Capital Markets Act will be considered as securities.
Securities are regarded by the law as financial investments in which investors are not obligated to make further payments after their first investment. The FSC also gave examples of the kind of digital assets that will probably be categorized as securities. The FSC states that this may include tokens that give holders a stake in company activities, rights to dividends or leftover assets, or financial gains for investors.
The nation’s Capital Markets Law will govern cryptocurrencies that satisfy the definitions of security tokens. Other impending laws will apply to digital assets that do not meet the criteria for securities.
The FSC claims that brokers, such as cryptocurrency exchanges, and token issuers will choose which cryptocurrencies would be categorized as securities based on the rules. The agency also noted that each situation will be evaluated individually.
The new guidelines are a component of the nation’s preparations for the legalization, issuance, and distribution of security tokens, the financial regulator added in a statement. The cryptocurrency ecosystem has seen active participation from South Korea. The city of Busan announced plans to create a decentralized digital commodities exchange on January 19. Government representatives announced that the platform would start running this year.
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