South Korean authorities are ready with their plan to categorise the crypto assets under the category of security & non-security tokens ahead of a new crypto regulation approach.
The South Korean population is Crypto friendly and also the government agencies in this country introduced strict rules on Crypto companies to ensure the safety of Crypto investors. To this date, less than half a dozen crypto companies are allowed to provide full crypto-fiat paired services in the Korean Crypto market.
On 6 Feb 2023, The Financial Services Commission (FSC) released a notice for all the Crypto companies, which provide services related to cryptocurrencies, to follow the new Crypto securities rule.
As per the FSC notice, all the Crypto assets or tokens which will pose nature like securities or qualify the definition of securities assets will be treated as securities crypto tokens.
-----Cryptonews AD----->>>
Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE
<<<-----Cryptonews AD-----
The Korean agency also ordered all the crypto exchanges to consider this new notice in their service & find out which crypto assets are matching with the nature of security assets and follow the securities law.
The definition of securities asset is almost similar in all countries and also here in South Korea securities asset law is the same as the US Securities law. Korean securities law will also consider all the crypto assets or crypto companies’ native tokens under Securities, which are providing stake reward or revenue on behalf of crypto assets holding via any kind of service.
Few reports noted that Ethereum (ETH) may also fall in the category of securities asset but opposite of this assumption few experts claimed that direct announcement is not sufficient to categorise the particular numbers of crypto assets in the category of securities, instead, there is need to understand the technology & Crypto assets staking system because such blind ruling will push almost all the crypto assets under the category of securities and in that situation, it will not be easy for the crypto companies & Investors to deal with PoS cryptocurrencies.
Read also: Aave founder believes stablecoin adoption may push Defi growth
South Korea to impose securities law on Crypto assets
https://bitcoinik.com/south-korea-to-impose-securities-law-on-crypto-assets/feed/
https://bitcoinik.com/south-korea-to-impose-securities-law-on-crypto-assets/feed/
