The South Korean regulator has expanded the definition of which cryptocurrencies, below which blockchain, need to be classified as securities.
On Feb. six, the Korean Financial Services Commission (FSC) explained tokens that qualify as securities as defined by the Korea Capital Markets Act will contain:
- Assets with shareholdings in company actions
- The company’s appropriate to dividends or revenue sharing.
This is the newest move in a sweeping “kimchi handle” overhaul in tight regulation of the cryptocurrency business right after a string of failures by business gamers which include Terraform Labs collapse of this nation.
“In the first half of 2023, we will ‘institutionalize’ by introducing amendments to the Electronic Securities Act and the Capital Markets Act in Congress,” the FSC explained.
The FSC explained digital asset support companies, which include cryptocurrency exchanges, will be accountable for valuing no matter whether the tokens are securities. Failure to comply with securities laws could outcome in comparable penalties for organizations, the company warned.
Furthermore, the FSC also notes that digital assets without the need of an issuer will not be topic to the over obligations.
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