South Korea Gets Serious About Crypto – How To Do It
South Korea makes a statement as it makes its stance on the cryptocurrency world crystal clear. From 6 September, the country’s top financial regulator revealed plans for launch a distinct digital securities market. This will be a separate entity from the Korea Composite Stock Price Index (KOSPI).
South Korea is making this move with that in mind institutionalize and promote cryptocurrencies in the country. Furthermore, the envisioned digital securities market will accept tokens that use blockchain to represent ownership rights or asset value. However, these tokens must be registered as electronic securities.
The Financial Services Commission (FSC) South Korea also entered. It notified law enforcement authorities of 16 foreign cryptocurrency exchanges’ violations Act on specific financial information.
An overview
Korea Exchange (KRX) will operate the digital securities market under the leadership of the FSC, and security firms will act as brokers for trades.
Furthermore, the listing of securities requested by the issuer or through a brokerage house must be examined and registered by Korea Securities Depository. The total volume of listed tokens will also be managed by the depository.
Tokens will be distributed in the same manner as current securities for the protection of investors. In addition, it will allow a small number of over-the-counter transactions at the beginning of the market.
The President’s Administration Yoon Suk-yeol previously declared in 2022 that they will work to legalize the sale of security tokens and initial coin offerings (ICOs).
Furthermore, according to additional reports, major South Korean securities firms NH, KB and Shinhan plan to launch digital asset exchanges in the first half of 2023.
South Korea and Crypto
South Korea has one of the most comprehensive regulatory frameworks for Bitcoin [BTC] industry. Many BTC exchanges left the country in 2021 when the government mandated that companies use ISMS certification.
Only five of the 35 virtual asset providers have registered locally. These include UpBit, Coinone, Gopax, Korbit and Bithumb. The aforementioned crypto exchanges are responsible for more than 99% of the country’s cryptocurrency trades.
However, the recent collapse of the Terra ecosystem increased the country’s attention on the regulation of cryptocurrencies.
