Korean Careful In Assessing 19 Tokens In SEC Case As Securities

Key Points:

• Korean financial regulators are investigating whether the coins at the center of the SEC case are securities.
• The SEC designated 19 main cryptocurrencies as securities after bringing a case against Binance and Coinbase.
• Major Korean exchanges also showed a cautious stance on the delisting of these coins.

According to Blockmedia, after the U.S. Security and Exchange Commission (SEC) lawsuits against the two largest crypto exchanges by market volume last week, trading platforms are being more careful when delisting the tokens mentioned by the SEC in the securities labeling list. However, the Korean financial agency has a different view from the regulations of the SEC.

Korean financial authorities stated:

“We are looking at whether the coins related to the SEC lawsuit are securities. It is not a short-term conclusion because the standards for securities in Korea and the United States are different.”

Large Korean exchanges were similarly wary about delisting these coins. An official reply from DAXA:

“We are watching whether the stock is judging.”

The Digital Asset Exchange Association (DAXA) is a grouping of South Korea’s top five cryptocurrency exchanges, which include UpBit, Bithumb, Coinone, Korbit, and Gopax. To avoid a repeat of the Terra Luna collapse, the group was founded.

DAXA is currently determining whether or not to determine securities as a common guideline for transaction support review. Another official in the cryptocurrency market said:

“Domestic exchanges are monitoring domestic and foreign regulations and market conditions. It is expected that it will take some time for the securities to be judged. Because the legal standards for judging securities in the U.S. and Korea are different, we cannot make a hasty decision.”

After suing Binance and CEO Changpeng Zhao for fraud, the SEC continues to sue the largest US cryptocurrency exchange Coinbase. For years, the crypto industry has argued that tokens cannot be considered securities and should not be regulated by the SEC. However, these lawsuits could completely change the cryptocurrency market.

The occurrence is expected to have a chilling effect on the 19 tokens referenced in the filings, causing them to relocate their operations to other regions of the globe. Among countries, Korea is the first to take a stand against US securities regulation.

Coins involved in a securities dispute started to be delisted from international exchanges one by one. Robinhood delists Solana (SOL), Polygon (MATIC) and Cardano (ADA) and eToro also ends support for Polygon (MATIC), Algorand (ALGO), Decentraland (MANA) and Dash (DASH).

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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