{"id":295966,"date":"2023-02-06T10:00:11","date_gmt":"2023-02-06T10:00:11","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=295966"},"modified":"2023-02-06T11:21:14","modified_gmt":"2023-02-06T11:21:14","slug":"south-korea-issues-guidance-on-security-tokens-stos","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/south-korea-issues-guidance-on-security-tokens-stos\/","title":{"rendered":"South Korea issues guidance on security tokens, STOs"},"content":{"rendered":"<p>South Korea's Financial Services Commission (FSC) <a href=\"https:\/\/www.fsc.go.kr\/no010101\/79386\">issued<\/a> guidance on the regulation of security tokens and their issuance on Feb. 6. According to the regulator, digital assets that fit the characteristics of securities as defined in the Capital Markets Act, will be regulated as securities in the country.<\/p>\n<p>As per the FSC, cryptocurrencies that offer a stake in business operations, and give holders rights to dividends, residual assets, or business profits, will fall under the category of securities under the Capital Markets Act.<\/p>\n<p>The securities regulations entail public disclosure requirements and prohibit unfair trade practices to protect the rights of investors.<\/p>\n<p>Cryptocurrencies that do not fall into the category of securities, however, will be regulated by the upcoming Framework Act on Digital Assets, the FSC said. Digital assets that do not have an issuer, like Bitcoin (BTC) and Ethereum (ETH), will not be considered securities, the FSC said.<\/p>\n<p>The FSC will also permit Security Token Offerings (STOs) by making amendments to its Electronic Securities Act.<\/p>\n<p>However, the FSC stated that token issuers and brokers, like crypto exchanges, will be required to assess which cryptocurrencies are securities on a case-by-case basis. This is similar to how companies have to self-determine whether they are issuing securities and follow the applicable regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea&#8217;s Financial Services Commission (FSC) issued guidance on the regulation of security tokens and their issuance on Feb. 6. According to the regulator, digital assets that fit the characteristics of securities as defined in the Capital Markets Act, will be regulated as securities in the country. As per the FSC, cryptocurrencies that offer a [&hellip;]<\/p>\n","protected":false},"author":1386,"featured_media":295995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea issues guidance on security tokens, STOs<\/title>\n<meta name=\"description\" content=\"S. Korea will regulate certain digital assets as securities under the Capital Markets Act and allow STOs under the Electronic Securities Act.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/south-korea-issues-guidance-on-security-tokens-stos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea issues guidance on security tokens, STOs\" \/>\n<meta property=\"og:description\" content=\"S. Korea will regulate certain digital assets as securities under the Capital Markets Act and allow STOs under the Electronic Securities Act.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/south-korea-issues-guidance-on-security-tokens-stos\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-06T10:00:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-06T11:21:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/south-korea-token.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monika Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monika Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/south-korea-issues-guidance-on-security-tokens-stos\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/south-korea-issues-guidance-on-security-tokens-stos\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#person\",\"name\":\"Monika Ghosh\",\"url\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"caption\":\"Monika Ghosh\"},\"jobTitle\":\"Former Reporter\",\"description\":\"Monika started reading about crypto in 2020 and went deeper and deeper down the rabbit hole. 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