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South Korea’s Watchdog Will Treat Security Tokens as Securities

ByLouis Adams

Feb 7, 2023 #South Korea
Reading time: < 1 minute

South Korea’s Financial Services Commission (FSC) has recently published guidelines on security tokens. According to them, they should be treated as securities and regulated in accordance with the Capital Markets Law.

Per the document, similar recommendations will apply to digital assets that have the characteristics specified in the guidelines.

The FSC may also recognize in this status those tokens that provide a share in business operations, entitle their holders to dividends or residual assets, or provide profit from a business.

Digital assets that do not fall under the definition of securities will be subject to regulatory assets that will be developed in the future.