South Korea announced guidelines outlining which specific cryptocurrencies will be subject to the same rules as financial instruments. The action is a component of the continuous evaluation of digital assets and the creation of thorough laws for the industry, crypto media outlet BeInCrypto reported on February 6.

The Financial Services Commission (FSC) of South Korea said that blockchain-based tokens would be considered and governed as securities provided, they meet the criteria outlined in the nation's Capital Markets Act. The Capital Markets Act defines “securities” as financial investment instruments that do not require investors to make additional payments on top of the original investment.

Furthermore, the FSC stated that each case would evaluate whether a cryptocurrency or other digital assets have security-like properties. The issuers and brokers, such as cryptocurrency exchanges, will be held responsible for making such evaluations in line with the regulations. The change intends to create an over-the-counter market for such tokens and to enable companies to directly issue such tokens without the need for financial institutions. Within the first half of 2023, it will present a proposal to include such revisions in current financial legislation.

Source: BEINCRYPTO