South Korea, mostly famous for its K-pop industry, framed guidance that defines which type of digital assets will come under securities in the country. The Financial Services Commission (FSC) said that the securities firms and token acquirers would have some clarity on how crypto tokens are defined as securities under new regulations.
As per the press release, the FSC said that the digital assets relevant to the security token categories would be regulated under the nation’s Capital Markets Law, and upcoming regulations will govern the crypto assets that don’t suit the securities characteristics.
A security token is the digitalization of securities under the Capital Markets Act using Distributed Ledger technology. If token securities are securities issued only in the form of digital assets, they are subject to the regulation of the Capital Markets Act.
“If the rights acquired by investors fall under the law, all securities regulations, such as public disclosure, authorization system, and prohibition of unfair trade, are applied to protect investors and maintain market order, no matter what form they are in,” FSC highlighted.
Recently the South Korean government announced its first independent sanctions on North Korean hackers for millions of cryptocurrency thefts from different platforms. According to the data provided by the country’s foreign ministry, North Korean cyber-attacks have looted $1.2 billion worth of crypto assets since 2017 and $626 million in 2022. As per the United Nations confidential report states that hackers stole more digital assets in 2022.
The South Korean officials reportedly confirmed that they sent their two men to track Do Kwon’s existence in Serbia. Earlier, Do Kwon was accused of a Ponzi scheme that cost him billions of won. The Seoul government sued Kwon for violating the Capital Market Law and accused five more Terraform employees in the case.
Seoul investigators have been searching for Kwon for the past few months. Since July, the South Korean government has raided Kwon and some Terra employees, including Gopax, Coinone, Upbit, Bithumb, and Korbit. In Sep 2022, the court issued a warrant to arrest Kwon and the other five members involved.
After two months, Kwon recently reacted to a tweet about the “money he secretly cashed out.”
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other devices. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/02/15/a-new-guidance-is-announced-for-south-koreas-crypto-firms/