South Korea established guidelines that outline which categories of digital assets will be regarded as securities in the nation and governed accordingly, as reported by the Cointelegraph.
According to Cointelegraph, the Financial Services Commission (FSC) stated in a press release that digital assets that meet the criteria outlined in the nation’s Capital Markets Act will be treated as securities.
Securities are regarded by this law as investments in the financial sector where investors are not required to make further payments after their initial investments. The FSC also offered examples of the types of digital assets that will probably be categorised as securities.
The FSC states that this may include tokens that give holders a stake in company operations, rights to dividends or leftover assets, or the ability to share in company profits with investors. The nation’s Capital Markets Law will govern cryptocurrencies that fit the definitions of security tokens. Other upcoming regulations will apply to digital assets that do not meet the criteria for securities, Cointelegraph further stated.
Various industries in South Korea are constantly developing, and the country has been actively participating in the crypto ecosystem.
(With insights from Cointelegraph)